EKPN Company has two investment centre divisions, Winnipeg and Regina. EKPNs strategy is developing innovative manufacturing solutions to meet its customers needs. EKPN also prides itself on delivering its innovative solutions in a timely fashion. The following information pertains to the 2019 year:

	Winnipeg	Regina
Revenues	$3,360,000	$1,680,000
Current liabilities	$216,000	$120,000
Operating income	$300,000	$96,000
Average operating assets	$2,160,000	$1,080,000
After tax operating income	$204,000	$69,600
Total capital employed	$1,860,000	$960,000
Actual cost of capital	9%	9%

The Winnipeg division has the opportunity to invest in some innovative technology to help design manufacturing solutions. The proposed investment would add operating income of $28,800 and would require additional computer equipment of $240,000. Currently, EKPN uses ROI to evaluate the performance of its Divisions.

Required: (round to 4 decimal places)

a) Calculate the ROI (version 2) for each division for 2019. (2 marks)

b) As the manager of the Winnipeg division would you invest in the innovative technology project? Show calculations to support your response. (3 marks)

c) EKPN is considering changing from ROI to EVA to evaluate Divisional performance. Calculate the EVA for each division. (4 marks)

d) Discuss at least one advantage and one disadvantage of using EVA versus ROI as a performance measure. (2 marks)

e) List the 3 non-financial perspectives of the balanced scorecard and provide, with explanation, one performance measure for each perspective that would be suitable for EKPNs divisions. (6 marks)