You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: CellT Corp. and Talk2Me Inc. Corporate tax for both firms is 35%. Your associate analyst has calculated and compiled, in the following table, a list of important figures you need for the analysis:

Data Collected

	CellT Corp.	Talk2Me Inc.
EBIT	$346,800	$142,800
Depreciation	$121,380	$49,980
Total operating capital	$1,468,800	$609,960
Net investment in operating capital	$612,000	$265,200
WACC	12.28%	17.35%

In your analysis, you want to look for several characteristicsone of them being the return on invested capital (ROIC). Using the information available, complete the following statements:

1.	The net operating profit after tax (NOPAT) for CellT Corp. is ??? , whereas the NOPAT for Talk2Me Inc. is ??? .
2.	CellT Corp. has a free cash flow of ??? , whereas, Talk2Me Inc. has a free cash flow of ???
3.	CellT Corp. has a higher/lower return on invested capital than Talk2Me Inc. has.

Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true?

A. If a company has positive NOPAT but a negative free cash flow, then the firm could be in a high-growth phase and making investments in operating capital to support growth.

B. If a company has negative NOPAT but a positive free cash flow, then the firm could be in a high-growth phase and making investments in operating capital to support growth.