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Pronghorn Corporation operates three divisions-Archer Barrett, and Corvell Division managers are evaluated based on the division's return on investment, and historically, the Corvell division has

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Pronghorn Corporation operates three divisions-Archer Barrett, and Corvell Division managers are evaluated based on the division's return on investment, and historically, the Corvell division has comistently outperformed the other two divisions Pronghornis senior management team has recently discovered that the Corvell Division manager has chosen not to invest in projects that would have been beneficial to the organization as a whole, and they are concerned that the current practice of evaluating the division managers' performance using return on investment may have contributed to these decisions. Therefore, the senior management team is considering the use of residual income or EVA to evaluate the division managers' performance. The following data is taken from the most recent year of operations. Archer Barrett Assets $29,952,000 $19.972,000 Corvell $7.992.900 2.257,300 758,000 330,000 4.492,800 3,195,520 1.598.580 Current liabilities Operating income Minimum rate of retum Weighted average cost of capital Tax rate 14% 14% 149 8% By 8% 30% 30% 30% (a) Calculate the return on investment residual income and EVA for each division (Round ROI answers to decimal places, s. 15% and all other answers to decimal places, es 5,215. / the amount is negotive then enter with a negative sin preceding the number, es. -5,125 or parentheses, es. (5,1257) (a) Calculate the return on investment, residual income, and EVA for each division. (Round ROI answers to decimal places, es 15% and all other answers to decimal places, as 5.215. If the amount is negative then enter with a negative si preceding the rumber, eg. -5,125 or parentheses, as (5.1251) Return on investment Archer 22 Barrett 36 Corvell X Residual Income $ Archer Barrett $ Corvell $ EVA Archer EVA Archer $ Barrett $ Corvell $ $

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