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Navarre Energy Research specializes in developing and commerclalizing new products. It is organized into two...

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Accounting

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Navarre Energy Research specializes in developing and commerclalizing new products. It is organized into two divisions, which are based on the products they produce. Canal Division is smaller, and the Iives of the products it produces tend to be shorter than those produced by the larger Lake Division. Selected financlal data for the past year are shown in the following table. Divisional irvestment is as of the beginning of the year. Navarre uses an 8 percent cost of capital and beginning-of-the-year Investment when computing ROI and residual income. Ignore income taxes. R8D is assumed to have a three-year ife in Canal Division and an eight-year iffe in Lake Dilsion. All R8D expenditures are spent at the beginning of the year. Assume there are no current itabilites and (unrealisticaly) that no R\&D investments had taken place before this year. Required: a. Compute EVA for the two divisions. Note: Do not round intermedlate calculations. Round your final answers to nearest whole doller amount. Enter your answers in thousands of dollars

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