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Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for
Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows: aR&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 Lasky Manufacturing uses residual income. a-2. Which division had the better performance? Complete this question by entering your answers in the tabs below. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses residual income. Note: Enter your answers in thousands of dollars rounded to 1 decimal place
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