Deep Sea Fisheries operates a chain of budget seafood restaurants, as well as its own shing eet, which operates in Fiji. Deep Sea is structured into three divisions: the Western Division and the Central Division, which manage the restaurants, and the Fishing Fleet Division. Each division operates as a separate stand-alone business, and is designed as an investment centre. The company uses return on investment to evaluate the performance of each division. For the purposes of calculating divisional ROI, investment capital is dened as total assets less current liabilities, and divisional operating prot after tax is used. Each division is required to achieve an ROI of at least 10 per cent after tax. To calculate divisional EVA, the weighted average cost of capital of 8 per cent is used. The company income tax rate is 30 per cent. The data relate to nancial performance for the last year. Two years ago, the Fishing Fleet Division replaced most of its fleet. The Central Division is the oldest division and owns all of its assets, while the Western Division leases most of its restaurant sites. The lease payments are treated as an expense