Question: Universal Electronics, Inc. (UE), which started operations one year ago, has two divisions: Consumer and Commercial. Both divisions invest heavily in R&D, which is assumed

Universal Electronics, Inc. (UE), which started operations one year ago, has two divisions: Consumer and Commercial. Both divisions invest heavily in R&D, which is assumed to benefit 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 Consumer Sales revenue Divisional income Divisional investment Current liabilities R&D Commercial $62,000 $97,000 12,750 14,535 37,500 42,750 5,000 4,800 5,000 5,000 Required: Evaluate the performance of the two divisions assuming UEI uses return on investment (ROI) ROI of Consumer division ROI of Commercial division % Which division performed better

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