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Exercise 14-33 (Algo) Comparing Business Units Using ROI (LO 14-2) Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of
Exercise 14-33 (Algo) Comparing Business Units Using ROI (LO 14-2) Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows: a 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 Lasky uses return on investment (ROl). a-2. Which division had the better performance? Complete this question by entering your answers in the tabs below. Evaluate the performance of the two divisions assuming Lasky uses return on investment (ROI). Note: Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1). Which division had the better performance? \begin{tabular}{|c|} \hline Carolinas \\ \hline Northeast \\ \hline \end{tabular}
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