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. Sales revenue Income Investment (beginning of year) Current liabilities (beginning of year) R&D expenditures East $4,400 795 1,850 370 1,350 West $8,400 900 3,400 370 1,250 *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 decimal place.) Divisions EVA $ 678.1 $ 611.2 a-2. Which division had the better performance? O East West