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: East $1,000 200 2,000 Sales revenue Income Investment (beginning of year) Current liabilities (beginning of year) R&D expendituresa West $5,000 390 3,000 200 400 200 500 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 return on investment (ROI). ROI Divisions East West a-2. Which division had the better performance? O East West