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 below. The companys weighted-average cost of capital is 12 percent.

		Division A			Division B
Total assets	$	6,180,000		$	8,570,000
Current liabilities		650,000			1,850,000
After-tax operating income		1,060,000			1,202,800
ROI		22	%		14	%

b.

Would EVA more clearly show the relative contribution of the two divisions to the company as a whole?

Divison A

Divison B