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Back Mountain Industries (BMI) has two divisions: East and West. BM has a cost of...

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Accounting

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Back Mountain Industries (BMI) has two divisions: East and West. BM has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business follows. East Sales revenue West $4,000 $8,000 Income 725 B40 Investment (beginning of year) 1.750 3,000 Current liabilities (beginning of year) 350 350 RD expenditures 1,250 1,150 *R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: 6-1 . Evaluate the performance of the two divisions assuming BMl uses economic value added. (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) 5 EVA Olvisions East West

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