Refer to the data in Problem 14-40. R&D is assumed to have a two-year life in the

Question:

Refer to the data in Problem 14-40. R&D is assumed to have a two-year life in the AC Division and a nine-year life in the SO division. All R&D expenditures are spent at the beginning of the year. Assume there are no current liabilities and (unrealistically) that no R&D investments had taken place before this year.
Required
a. Compute EVA for the two divisions.
b. How, if at all, does this change your assessment of the performance of the two divisions?