PLEASE HELP. URGENT

year. For practical purposes, though, Oscar can lgnore depreciation on the new machine because it wili not go into operation until the start of the next year The old machine, which has no salvage value. must be disposed of to make room for the new machine. maces. Required: a. What is Forte chamed a teta OI if Oscar does not acquire the new machine? (Enter your anwwer as a percentage rounded to 1 decimal place fi.e. 32.1).) b. What is Forbeschivsionswoil this year if Oscar acqures the new machine? (Enter your answer as a percentage rounded to 1 decimal place (0.e. 32 . 1).) Bisbee Health Products invests heavily in research and development (R\&D). although it must currently treat its R\&D expenditures as expenses for financial accounting purposes. To encourage investment in R\&D, Bisbee evaluates its division managers using EVA. The company adjusts accounting income for R\&D expenditures by assuming these expenditures create assets with a twoyear life. That is, the R\&D expenditures are capitalized and then amortized over two years. Western Division of Bisbee shows after-tax income of $7.9 million for year 2 . R\&D expenditures in year 1 amounted to $3.2 million and in year 2, R\&D expenditures were $4.6 million. For purposes of computing EVA, Bisbee assumes all R\&D expenditures are made at the beginning of the year. Before adjusting for R\&D, Western Division shows assets of $38.7 million at the beginning of year 2 and current liabilities of $650,000. Bisbee computes EVA using divisional investment at the beginning of the year and a 14 percent cost of capital. Required: Compute EVA for Western Division for year 2. (Enter your answers in dollars, not in millions.) current year, Forbes imvested $5.15 million in automabed equiprent for lest machine assembly. The division's expected income statement at the beginning of the year was as folows. end of the year. For prictical purposes, though, Oscar can lonore depreciation on the new machine because it will nof go into operaton until the starl of the next yoar. The oid machine, which has no salvage value. must be disposed of to make room for the new machine. is conpuled based on the end-of-year balance of assets, net book vakie. Agnore taxes. Required: a. What is Fortes Civision's residual income if Cscar does not acouere the new machine? b. What is Forbes Disionis residual income tois your it Qecar aocueres the new machine? 6. If Oscar acouires the rew machine and operabes it acconging to specificatione. What residua income in enpected for neat year? (Enter your anwwers in thousarde of doliars. Negative ameunts should be indicated by a minus sign. Round your anweers to the nearest whoie doliars) year. For practical purposes, though, Oscar can lgnore depreciation on the new machine because it wili not go into operation until the start of the next year The old machine, which has no salvage value. must be disposed of to make room for the new machine. maces. Required: a. What is Forte chamed a teta OI if Oscar does not acquire the new machine? (Enter your anwwer as a percentage rounded to 1 decimal place fi.e. 32.1).) b. What is Forbeschivsionswoil this year if Oscar acqures the new machine? (Enter your answer as a percentage rounded to 1 decimal place (0.e. 32 . 1).) Bisbee Health Products invests heavily in research and development (R\&D). although it must currently treat its R\&D expenditures as expenses for financial accounting purposes. To encourage investment in R\&D, Bisbee evaluates its division managers using EVA. The company adjusts accounting income for R\&D expenditures by assuming these expenditures create assets with a twoyear life. That is, the R\&D expenditures are capitalized and then amortized over two years. Western Division of Bisbee shows after-tax income of $7.9 million for year 2 . R\&D expenditures in year 1 amounted to $3.2 million and in year 2, R\&D expenditures were $4.6 million. For purposes of computing EVA, Bisbee assumes all R\&D expenditures are made at the beginning of the year. Before adjusting for R\&D, Western Division shows assets of $38.7 million at the beginning of year 2 and current liabilities of $650,000. Bisbee computes EVA using divisional investment at the beginning of the year and a 14 percent cost of capital. Required: Compute EVA for Western Division for year 2. (Enter your answers in dollars, not in millions.) current year, Forbes imvested $5.15 million in automabed equiprent for lest machine assembly. The division's expected income statement at the beginning of the year was as folows. end of the year. For prictical purposes, though, Oscar can lonore depreciation on the new machine because it will nof go into operaton until the starl of the next yoar. The oid machine, which has no salvage value. must be disposed of to make room for the new machine. is conpuled based on the end-of-year balance of assets, net book vakie. Agnore taxes. Required: a. What is Fortes Civision's residual income if Cscar does not acouere the new machine? b. What is Forbes Disionis residual income tois your it Qecar aocueres the new machine? 6. If Oscar acouires the rew machine and operabes it acconging to specificatione. What residua income in enpected for neat year? (Enter your anwwers in thousarde of doliars. Negative ameunts should be indicated by a minus sign. Round your anweers to the nearest whoie doliars)