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: Northeast Sales revenue Income Divisional assets (beginning of year) Current liabilities (beginning of year) R&D expendituresa Carolinas $ 800 $ 4,000 160 1,000 160 312 1,500 160 400 320 PR&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?