Exercise 14-35 (Static) Comparing Business Units Using Economic Value Added (EVA) (LO 14-4) Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows: Sales revenue Income Carolinas $ 800 160 Req A1 1,000 160 400 Divisional assets (beginning of year) Current liabilities (beginning of year) R&D expendituresa aR&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA). a-2. Which division had the better performance? Req A2 Northeast $ 4,000 312 1,500 160 320 Complete this question by entering your answers in the tabs below. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA). Note: Note: Enter answers in thousands of dollars. Round your answers to 1 decimal place.

Exercise 14-35 (Static) Comparing Business Units Using Economic Value Added (EVA) (LO 14-4) Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of doliars) for the first year of business follows: a R\&D is assumed to benefit two periods. All R\&D is spent at the beginning of the yeat Required: a-1. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA) a-2. Which division had the better performance? Complete this question by entering your answers in the tabs below. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA). Note: Note: Enter answers in thousands of collars. Round your answers to 1 decimal place