Sarang Music (SM) has two divisions: South and North. SM has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business follows: Sales revenue Income Investment (beginning of year) Current liabilities (beginning of year) R&D expendituresa South $1,000 200 2,000 200 500 North $5,000 390 3,000 200 400 Required: a-1. Evaluate the performance of the two divisions assuming BMI uses return on investment (ROI). ROI Divisions East West % % a-2. Which division had the better performance? East o West