Refer to the data in Exercise. In Exercise, Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15%. Selected financial information (in thousands of dollars) for the first year of business follows:
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a R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year.
Required : Evaluate the performance of the two divisions assuming BMI uses economic valueadded.
