Question: ELN Waste Management has a subsidiary that disposes of hazardous waste and subsidiary that collects and disposes of residential garbage. Information related to the two subsidiaries follows: Total Assets $87,000,000 Hazardous Residential Waste Waste $15,300,000 Noninterest-bearing current liabilities Net Income Interest expense Required rate of return Tax rate Required 1. Calculate ROI for both subsidiaries. $3,300,000 $13,200,000 $1,870,000 $6,600,000 $1,375,000 $8,030,000 10% 13% 40% 40% 2. Calculate EVA for both subsidiaries. Note that since no adjustments for accounting distortions are being made, EVA is equivalent to residual income. 3. Which subsidiary has added the most to share hold value in the last year? 4. Based on the limited information, which subsidiary is the best candidate for expansion? Explain.