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. East West Sales revenue $ 2,000 $ 6,000 Income 375 540 Investment (beginning of year) 1,750 2,250 Current liabilities (beginning of year) 250 250 R&D expendituresa 750 650 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 economic value added. (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) a-2. Which division had the better performance? multiple choice West East