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Return to question 6 Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 20 percent. Selected financial
Return to question 6 Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 20 percent. Selected financial information (in thousands of dollars) for the first year of business follows. 56 Sints Sales revenue Income Investment (beginning of year) Current liabilities (beginning of year) R&D expendituresa East $2,400 445 1,650 270 850 West $6,400 600 2,150 270 750 aR&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: 2-1. Evaluate the performance of the two divisions assuming BMI uses economic value added. (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) & Answer is not complete. Divisions EVA East $ 115.0 West
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