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I need EVA Pronghorn Corporation operates three divisions-Archer, Barrett, and Corvell. Division managers are evaluated based on the division's return on investment, and historically, the

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Pronghorn Corporation operates three divisions-Archer, Barrett, and Corvell. Division managers are evaluated based on the division's return on investment, and historically, the Corvell division has consistently outperformed the other two divisions. Pronghorn's senior management team has recently discovered that the Corvell Division manager has chosen not to invest in projects that would have been beneficial to the organization as a whole, and they are concerned that the current practice of evaluating the division managers performance using return on investment may have contributed to these decisions. Therefore, the senior management team is considering the use of residual income or EVA to evaluate the division managers' performance. The following data is ta s taken from the most recent year of operations. Archer Barrett $19.972.000 Assets $29,952,000 Corvell $7.992.900 330,000 Current liabilities 2,257,300 758,000 Operating income 4492,800 3,195,520 1.598.580 Minimum rate of return 14% 14% 149 Weighted average cost of capital 8% 8% 8% Tax rate 30% 30% 30% (a) Calculate the return on investment, residual income, and EVA for each division. (Round Roi answers to O decimal places es 15% and Return on Investment Archer 15% Barrett 16 % Corvell 20% Residual Income Archer $ 299520 Barrett 399440 $ Corvell 479574 EVA $ Archer 2096640 $ Barrett 1597760 Corvell $ 959145

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