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 $ 26,000 $ 43,000 Divisional income 5,000 4,680 Divisional investment 28,500 29,250 Current liabilities 1,400 1,200 R D 1,400 1,400 Required Evaluate the performance of the two divisions assuming UEI uses economic value added (EVA) (Enter your answers in dollars rounded to 1 decimal place ) EVA of Consumer division EVA of Commercial division Which division performed better

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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	$	26,000	$	43,000
Divisional income		5,000		4,680
Divisional investment		28,500		29,250
Current liabilities		1,400		1,200
R&D		1,400		1,400

Required:

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

Universal Electronics, Inc. (UEI), which started operations one year ago, has two

EVA of Consumer division EVA of Commercial division Which division performed better

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