Harwood Ltd., a division of Stacy Inc., is in the process of evaluating the performance of its management team. Stacys board of directors has asked you to provide figures of performance to be used for the evaluation. You have gathered the following data and have decided to present information in various forms, including return on investment, residual income, and economic value added. Budgeted information for the year: Stacy

Income tax rate	25%
Expected rate of return for shareholders (imputed interest)	10%
Profit margin	9%
Asset turnover	3.0 times

Imputed interest is that interest considered to have been paid, although no actual payment was made. A zero coupon bond, for instance, has imputed annual interest. During the current year, the companys actual revenue and costs for Harwood include the following: Total assets were $103,123,205 and current liabilities are $7,405,076. The total before tax operating income was $13,736,261. The tax rate is 25%. The companys WACC is 10.29% Required: 1. Compute the return on investment, residual income, and economic value added for Harwood Ltd., a subsidiary of Stacey Consolidated Inc., for the current year. (Round your final answer to two decimal places. For ROI and RI, remember to include only costs relevant to the segment.) 2. When you presented this data to management, you were asked why you provided three measures of financial performance. What is your reply?