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Paula Boothe, president of the Riverbed Corporation, has mandated a minimum 10% return on investment for any project undertaken by the company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 12%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 13% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $1,833,000 in a new line of energy drinks that is expected to generate $323,000 in operating income. Assume that Riverbed Corporation's actual weighted-average cost of capital is 9% and its tax rate is 32%. (a) Calculate the economic value added of the proposed new line of energy drinks. (If the economic value added is negative then enter with a negative sign preceding the number, e.g. 5,125 or parenthesis, e.g. (5,125). Round answer to 0 decimal places, e.g. 5,125.) Economic value added $ Pharoah Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: (a) Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. 5,125 or parenthesis, e.g. (5,125).) The corporate office is giving the managers of each channel the option of a customer relationship management system that will allow the managers to gather data about their customers and be more effective in their marketing efforts. The system will cost $860,000 and is expected to generate $161.000 in additional annual segment margin. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. 5,125 or parenthesis, e.g. (5,125).)