Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost-of-capital of 16.5%. Selected financial information (in thousands of dollars) for the first year of business follows:

		East			West
Sales revenue	$	1,750		$	6,500
Income		350			540
Investment (beginning of year)		2,750			3,750
Current liabilities (beginning of year)		350			350
R&D expenditures (note a)		800			550

^a R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year.

Required:

Evaluate the performance of the two divisions assuming BMI uses economic value added. (Do not round your intermediate computations and round your final answers to one decimal place.)

Economic Value Added -

East =

West =