Question: a . Compute the return on investment using both book and current values for each division. ( Round answers to three decimal places. ) For
a Compute the return on investment using both book and current values for each division. Round answers to three decimal places. For ROI calculations, Envision uses operating assets as the investment base.
b Compute the residual income for both book and current values for each division.
c Compute the economic valueadded income for both book and current values for each division if the tax rate is and the weighted average cost of capital is
d Does book value or current value provide a better basis for performance evaluation? Which division do you consider the most successful?
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