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please help with part B with computing the EVA, thank you! Sapsora Company uses ROI to measure the performance of its operating divisions and to
please help with part B with computing the EVA, thank you!
Sapsora Company uses ROI to measure the performance of its operating divisions and to reward division managers. A summary of the annual reports from two divisions is shown as follows. The company's weighted average cost of capital is 10 percent. Total assets Current liabilities After-tax operating income ROI Division A $ 6,380,000 $ 800,000 $ 1,120,000 248 Division B $ 8,370,000 $ 1,950,000 $ 1,204,000 138 a. Which division is more profitable in absolute dollars? b. Compute the EVA for Division A and Division B. c. Suppose the manager of Division A was offered a one-year project that would increase his investment base by $350,000 and show a profit of $38,500. Would the manager be motivated to invest in the new project? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the EVA for Division A and Division B. EVA for Division A EVA for Division B $ 340,000 X $ 340,000Step by Step Solution
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