12/4/21, 1:47 PM Ch 14 HW G - Question 5 Ch 14 HW - Connect Saved Help Save & Exit Submit Check my work 5 Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business follows. 1.87 points eBook Sales revenue Income Investment (beginning of year) East $1,000 200 2,000 West $5,000 390 3,000 Print Current liabilities (beginning of year) R&D expendituresa 200 500 200 400 References aR&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming BMI uses economic value added (EVA). (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) Divisions EVA East West a-2. Which division had the better performance? East West Mc Graw Hill < Prev 5 of 8 Next > https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252F... 1/1