A division has operating income of $180,000, a required rate of return of 15%, and average operating assets of $900,000. Calculate the residual income. Additionally, if the cost of capital is 12%, calculate the EVA. Discuss the significance of residual income and EVA in performance measurement and managerial decision-making. Analyze how these metrics provide insights into value creation beyond traditional accounting profits. Consider the strategic implications of residual income and EVA for evaluating the performance of divisions, projects, or investments. Explain how these metrics align managerial incentives with shareholder value creation and support decisions on resource allocation, capital investments, and strategic initiatives. Discuss the limitations of residual income and EVA and how they can be complemented with other performance metrics.