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Back Mountain Industries (BMI) has two divisions: East and West BMI has a cost-of-capital of 15.4% Selected financial information (in thousands of dollars) for the

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Back Mountain Industries (BMI) has two divisions: East and West BMI has a cost-of-capital of 15.4% Selected financial information (in thousands of dollars) for the first year of business follows R&D is assumed to benefit two periods All R&D is spent at the beginning of the year Evaluate the performance of the two divisions assuming BMI uses residual income (Negative amounts should be indicated by a minus sign. Do not round your intermediate computations and round your final answers to two decimal places.)

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