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Sapsora Company uses ROI to measure the performance of its operating divisions and to reward division managers. A summary of the annual reports from two

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Sapsora Company uses ROI to measure the performance of its operating divisions and to reward division managers. A summary of the annual reports from two divisions is shown as follows. The company's weighted-average cost of capital is 10 percent. Division A Division B Total assets $ 6,380,000 $ 8,370,000 Current liabilities $ 800,000 $ 1,950,000 After-tax operating income $ 1,120,000 $ 1,204,000 ROI 24% 13% 3. Which division is more protable in absolute dollars? b. Compute the EVA for Division A and Division B. c. Suppose the manager of Division A was offered a one-year project that would increase his investment base by $350,000 and show a profit of $38,500. Would the manager be motivated to invest in the new project? Q Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. RequiredB RequiredC Compute the EVA for Division A and Division B. EVA for Division A $ 340,000 9 EVA for Division B as 340,000 6

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