Question: Universal Electronics, Inc. (UEI), 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. (UEI), 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		Commercial
Sales revenue	$	22,000		$	37,000
Divisional income		3,850			3,885
Divisional investment		27,500			27,750
Current liabilities		1,000			800
R&D		1,000			1,000

Required:

Evaluate the performance of the two divisions assuming UEI uses economic value added (EVA). (Enter your answers in thousands of dollars rounded to 1 decimal place.)

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