I don't understand the formula to get started...... thanks

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 Sales revenue Income Investment (beginning of year) Current liabilities (beginning of year) R&D expenditures East West S4,200 S8,200 870 1,800 3,200 360 1,300 1,200 760 360 R&D is assumed to beneft 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.) East West a-2. Which division had the better performance? East West