ROI and economic value added. The El Dorado Freight Company uses return on investment and economic value added as performance evaluation measures for its division managers. The company's minimum ROI is 14 percent, and its weightedaverage cost of capital is 10 percent. Assume a tax rate of 20 percent. Financial data for the company's three divisions are shown below. (All foreign currencies have been converted to U.S. dollars.)

a. Compute the return on investment for each division.

b. Compute the economic value added amount for each division.

c. Which division's manager is performing the best using ROI? Which division's manager is performing the best using economic value added? Explain your results.

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Sales Operating income Assets Current liabilities U.S. Division Asia Division Europe Division $300,000 $375,000 $450,000 25,500 28,000 150,000 125,000 29,500 175,000 10,000 5.000 15,000