The following results for the year pertain to the Maddox Division of Ryan Corporation: Sales Variable expenses Fixed expenses $640,000 160,000 300,000 The weighted average cost of capital is 12 percent. The firm's minimum required rate of return is 14 percent. Taxes for the firm are 40 percent. Required: 1. Assume that the average operating assets are $1,000,000, compute the return on investment for the Maddox Division. 2. Compute the economic value added (EVA) assuming that the total capital employed by the Maddox Division is $800,000. 3. General Electric has an EVA of 6.0, the best in the United States. IBM, on the other hand, has an EVA of 8.0, which is one of the worst. Why do you think that these two companies have such different EVAs?