How do you calculate the EVA?

Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business follows. East Sales revenue Income Investment (beginning of year) Current liabilities (beginning of year) R&D expendituresa $1,000 200 2,000 200 500 West $5,000 390 3,000 200 400 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 (EVA). (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) EVA Divisions East West