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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
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 West $2,800 $6,800 660 1,550 2,050 290 850 Sales revenue Income Investment (beginning of year) Current liabilities (beginning of year) R&D expendituresa 515 290 950 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.) sionsEVA East West
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