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1 . Compute the economic value added ( EVA ) for each division for year 3 . Assume that the R&D expenditures are incurred uniformly

1 .

Compute the economic value added

(

EVA

)

for each division for year

3 .

Assume that the R&D expenditures are incurred uniformly over the year. Bentler uses a cost of capital of

12

percent.

2 .

Which division performed better?

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