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Calculator Economic Value Added Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertins to last year's results: Adams

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Calculator Economic Value Added Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertins to last year's results: Adams Division Jefferson Division Net (after-tax) income 605,000 $318,150 Total capital employed 4,720,000 3,250,000 Washington's actual cost of capital was 14% Required: 1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign 118,550 x 2. Calculate the EVA for the Jefferson Division. If required, enter a negative IVA as a negative number by entering your answer with the minus sign $ -76,000 x 3. Conceptual Connection: Is each division creating or destroying wealth? Adams Division Destroying wealth Jefferson Division Destroying wealth 4. Describe generally the types of actions that Washington's management team could take to increase Jefferson Division's EVA a. Increase theater-tax operating profit that is generated from using the same amount of invested capital h. Continue to generate the same abertat operating profit but useless capital todos c. Continue to generate the same after-tax operating profit using the same amount of capital, but with a lower cost of capital d. Decrease theatertax operating profit that is generated from using the same amount of invested capital. e. Continue to generate the samewertex operating profit but use more capital to do so. Ches. My work 3 mor Check My Work uses remaining Previous Next Email Instructor Save and Be Sure Assignment for Grad MacBook Air TALEBO

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