I am needing to check my work for this problem. Attached is my work on the first spreadsheet, and the second page is what I am supposed to fill out. Can someone let me know if I have done it correctly?

Sevilla Consulting offers environmental consulting services worldwide. The managers of branch offices are rewarded for superior performance with bonuses based on the economic value that the office adds to the company. Last year's operating results for the results for the entire company and for its three officers, expressed in millions of U.S. dollars as are follows:

Worldwide Europe Americas Asia

Cost of Capital 9% 10% 8% 12%

Total Assets $210 $70 $70 $70

Current Liabilities $80 $10 $40 $30

After-tax operating income $15 $5 $5 $5

1. Compute the economic value for each office worldwide. What factors affect each office's economic value added? How can an office improve its economic value added?

2. If manager's bonuses are based on economic value added to office performance, what specific action will managers be movitated to take?

3. Is economic value added the only performance measure needed to evaluate investment centers adequately? Explain your response.

Operating Incom total Assets Less : CL Capital Invested Cost of Capital Capital Charge EVA Worldwide Europe America Asia $15.00 $5.00 $5.00 $210 $80 $130 9% $11.70 $3.30 $70 $10 $60 10% $6.00 ($1) $70 $40 $30 8% $2.40 $2.60 $5.00 $70 $30 $40 12% $4.80 $0.20 Chapter 7, C 4. Please complete the cells in yellow ONLY! 1. (In millions of dollars) Worldwide: ### [ 9% ( ### ### ) ] = $3.30 Europe: $5 [### ( $79 ### ) ] = ($1.90) Americas: $5 [ 8% ( $70 ### ) ] = $2.60 Asia: $5 [### ( $70 ### ) ] = $0.20 Managerial Analysis 2. Managers will need to increase increase post-tax operating profit and in order to increase EVA and justify their bonus entitlements. 3