value 4.00 points Exercise 14-27 Compare Alternative Measures of Division Performance (LO 14-2, 4) The following data are available for two divisions of Solomons Company: North Division South Division Division operating profit $6,000,000 Division investment $40,000,000 320,000,000 30,000,000 The cost of capital for the company is 8 percent. Ignore taxes Required a-1. Calculate the ROI for both North and South divisions. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) Divisions ROI North South a-2. If Solomons measures performance using ROI, which division had the better performance? North O South b-1. Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.) Divisions EVA North South b-2. If Solomons measures performance using economic value added, which division had the better performance? North South c. Would your evaluation change if the company's cost of capital were 16 percent? 1. When evaluated by ROI? O Yes O No 2. When evaluated by EVA? O Yes O No