top management of Holt in 20X8 10-43 Evaluation of Divisional Performance As the CEO of Middling Hardware Company, you examined the following measures of the perfor mance of three divisions (in thousands of dollars) Average Net Assets Based On Operating Income Based On Division Historical Cost Replacement Cost Historical Cost Replacement Cost Tools $15,000 $16,000 52600 $2.500 Appliances Lighting 44,000 27,000 $5,000 6,750 6.150 45,000 5.000 3,900 "The differences in operating income between historical and replacement cost are atributable to the differences is depres exposes 1. Calculate for each division the rate of return on net assets and the economic profit based on his- torical cost and on replacement cost. For purposes of calculating economic profit, use 10% as the cost of capital 2. Rank the performance of each division under cach of the four different measures computed in number 1 What do these indicate about the performance of the divisions Of the division Neler Why