Universal Electronics, Inc. (UEI), which started operations one year ago,has two divisions: Consumer and Commercial. Both divisions invest heavily in R&D, which is assumed to generate benefits for five years. R&D spending is made uniformly throughout the year. UEI has a cost of capital of 11 percent. Selected financial information for the two divisions (in thousands of dollars) for the year just completed follows.

RequiredEvaluate the performance of the two divisions assuming UEI uses return on investment (ROI).

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Commercial Consumer Sales revenue $22,000 $37,000 Divisional income Divisional investment 3,850 3,885 27,500 27,750 Current liabilities 1,000 800 R&D 1,000 1,000