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 $ 60,000 $ 99,000

Divisional income 10,300 10,710

Divisional investment 34,500 38,250

Current liabilities 3,800 3,600

R&D 3,800 3,800

Required: Evaluate the performance of the two divisions assuming UEI uses economic value added (EVA).