PERMATA Berhad (PERMATA) is a one of the best insurance companies in Malaysia. PERMATA strongly believes in evaluating the performance of its standalone divisions using Return on Investment (ROI) and Residual Income (RI). For the year ended 31 December 2020, PERMATA's CFO received the following information about the performance of the Property Division: Sales revenues Operating income Total assets Current liabilities Debt (interest rate at 6.25%) Common equity (RM) 2,400,000 400,000 2,500,000 500,000 1,200,000 800,000 For the purpose of divisional performance evaluation, PERMATA defines investment as total assets while income is defines as operating income before interest and taxes. The firm is subject to income tax rates of 24%. Required: a) Compute the net income after taxes of the Property Division. (4 marks) b) Compute the Property Division's ROI for the year 2020. (3 marks) c) Based on PERMATA's required rate of return of 12%, compute the Property d) e) f) Division's residual income for 2020. (4 marks) PERMATA's CFO has heard about Economic Value Added (EVA) and is curious about whether it might be a better measure to use for evaluating division managers. PERMATA's divisions have similar risk characteristics. PERMATA's debt trades at book value while its equity has a market value approximately twice that of its book value. The company's weighted average cost of capital is 10%. Calculate EVA for the Property Division; (5 marks) PERMATA is also concerned that the pressure for short-run performance might cause managers to ignore emerging threats and opportunities. Recommended TWO (2) nonfinancial measures that PERMATA could use to evaluate divisional performance. (4 marks) A division should not be evaluated according to ROI, RI and EVA because these accounting measures are subjective due to cost allocation decision. Discuss. (5 marks)