ROI, Residual Income, and EVA with Different Bases Envision Company has a target return on capital of 12 percent. The following financial information is available for October ($ thousands):

Required a. Compute the return on investment using both book and current values for each division. Round answers to three decimal places.

b. Compute the residual income for both book and current values for each division. Use negative signs with answers, when appropriate.

c. Compute the economic value added income for both book and current values for each division if the tax rate is 30 percent and the weighted average cost of capital is 10 percent.

Use negative signs with answers, when appropriate.

\begin{tabular}{|l|r|r|r|r|r|r|} \hline & \multicolumn{2}{c}{\begin{tabular}{c} Software Division \\ (Value Base) \end{tabular}} & \multicolumn{2}{c}{\begin{tabular}{c} Consulting Division \\ (Value Base) \end{tabular}} & \multicolumn{2}{c|}{\begin{tabular}{r} Venture Capital Division \\ (Value Base) \end{tabular}} \\ \hline Sales & $140,000 & $140,000 & $240,000 & $240,000 & $840,000 & $840,000 \\ \hline Income & 16,750 & 16,200 & 20,900 & 24,520 & 61,230 & 56,420 \\ \hline Assets & 70,000 & 90,000 & 100,000 & 110,000 & 610,000 & 590,000 \\ \hline Liabilities & 10,000 & 10,000 & 14,000 & 14,000 & 40,000 & 40,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline & Book Value & Current Value \\ \hline Software & 0 & 0 \\ \hline Consulting & 0 & 0 \\ \hline Venture Capital & 0 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & Book Value & Current Value \\ \hline Software & $ & $ \\ \hline Consulting & 0 & 0 \\ \hline Venture Capital & 0 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & Book Value & Current Value \\ \hline Software & 0 & $ \\ \hline Consulting & 0 & 0 \\ \hline Venture Capital & 0 & 0 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|r|r|r|} \hline & \multicolumn{2}{c}{\begin{tabular}{c} Software Division \\ (Value Base) \end{tabular}} & \multicolumn{2}{c}{\begin{tabular}{c} Consulting Division \\ (Value Base) \end{tabular}} & \multicolumn{2}{c|}{\begin{tabular}{r} Venture Capital Division \\ (Value Base) \end{tabular}} \\ \hline Sales & $140,000 & $140,000 & $240,000 & $240,000 & $840,000 & $840,000 \\ \hline Income & 16,750 & 16,200 & 20,900 & 24,520 & 61,230 & 56,420 \\ \hline Assets & 70,000 & 90,000 & 100,000 & 110,000 & 610,000 & 590,000 \\ \hline Liabilities & 10,000 & 10,000 & 14,000 & 14,000 & 40,000 & 40,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline & Book Value & Current Value \\ \hline Software & 0 & 0 \\ \hline Consulting & 0 & 0 \\ \hline Venture Capital & 0 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & Book Value & Current Value \\ \hline Software & $ & $ \\ \hline Consulting & 0 & 0 \\ \hline Venture Capital & 0 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & Book Value & Current Value \\ \hline Software & 0 & $ \\ \hline Consulting & 0 & 0 \\ \hline Venture Capital & 0 & 0 \\ \hline \end{tabular}