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Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 25 percent. Selected financial information (in thousands of
Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 25 percent. Selected financial information (in thousands of dollars) for the first year of business follows EastWest S2,600 $6,600 480 630 ,600 2,100 280 280 900 800 Sales revenue Income nvestment (beginning of year) Current liabilities (beginning of year) R&D expenditures R&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. (Enter answers in thousands of dollars. Round your answers to 1 decima place.) Divisions EVA East West
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