axes Allocated corp. overhead Cost of goods sold Divisional investment R&D Sales SG&A AC Division S 600 3,200 9,000 2,000 8,000 700 SO Division $ 1,800 7,000 80,000 3,600 20,000 1,530 R&D is assumed to have a two-year life in the AC Division and a nine-year life in the SO division. All R&D expenditures are spent at the beginning of the year. Assume there are no current liabilities and (unrealistically) that no R&D investments had taken place before this year. Required: a. Compute EVA for the two divisions. (Do not round intermediate calculations.) AC Division SO Divisi Economic value added