Exercise 14-30 (Algo) Comparing Business Units Using Economic Value Added (EVA) (LO 14-4) Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 20 percent. Selected financial Information (In thousands of dollars) for the first year of business follows. Income Sales revenue Investment (beginning of year) East $4,800 865 West 1,950 $8,800 960 3,800 Current liabilities (beginning of year) 390 390 R&D expendituresa 1,450 1,350 *R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming BMI uses economic value added. (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) Divisions EVA East West a-2. Which division had the better performance? East West