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...

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


Extracted text: 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. Сommercial $37,000 3,885 27,750 Consumer Sales revenue Divisional income Divisional investment Current liabilities $22,000 3,850 27,500 1,000 1,000 800 RAD 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.) EVA of Consumer division EVA of Commercial division Which division performed better?