Colonial Pharmaceuticals is a small firm specializing in new products. It is organized into two divisions, which are based on the products they produce. AC Division is smaller and the le of the products it produces tend to be shorter than those produced by the larger SO Division Selected financial data for the past year is shown below. Divisional investment is as of the beginning of the year. Colonial Pharnaceuticals uses a 10 percent cost of capital and uses beginning-of the year investrient when computing ROl and residual income. Ignore income taxes. AC Division SODivision S 650 3,300 10,000 2,500 10,000 $ 1300 6.000 5.000 3,150 9 500 1 030 Alocated ccrp. overhead Cost of goods seld DiMsional inwestment R&D Sales SG&A R&Dis assumed o heve a t place before this year year life in he AC Di sion and nine year i e in he SO drvision. A R D expenditures are spent t he be rin ng o he year Assume here are no current liabilities and unreallsuca hat no R D lnvestment had a en Required: a. Compute EVA tor the two divisions. (Do not round intermediate calculations.) Division SO Divisiorn Economic value added