c. Compute the economic value added income for both book and current values for each division if the tax rate is 30 percent and the weighted average cost of capital is 10 percent.

Use negative signs with answers, when appropriate.

	Book Value	Current Value
Software	$Answer	$Answer
Consulting	Answer	Answer
Venture Capital	Answer	Answer

ROI, Residual Income, and EVA with Different Bases Envision Company has a target return on capital of 12 percent. The following financial information is available for October ($ thousands): Software Division Consulting Division Venture Capital Division (Value Base) (Value Base) (Value Base) Book Current Book Current 0O Current Sales Income 2,250 11,700 16,400 20,020 Assets Liabilities 10,000 10,000 14,000 14,000 100,000 $100,000 $200,000 $200,000 $800,000 800,000 51,920 70,000 90,000 100,000 110,000 610,000 590,000 40,000 56,730 40,000 Required a. Compute the return on investment using both book and current values for each division Round answers to three decimal places Book Value Current Value Software Consulting Venture Capital b. Compute the residual income for both book and current values for each division Use negative signs with answers, when appropriate Book Value Current Value Software Consulting Venture Capital