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

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DOOR Economic Value Added Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Adams Division Jefferson Division $719,950 $362,250 Net (after-tax) income Total capital employed 4,480,000 3,282,500 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. 2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign, 3. Conceptual Connection: Is each division creating or destroying wealth Adams Division Creating wealth Jefferson Division Destroving wealth

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