East and west. bmi has a cost of capital

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Reference no: EM13876399

Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15%. Selected financial information (in thousands of dollars) for the first year of business follows: 

96_269-B-M-A-P-E (1054).png

a R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year.

Required :
Evaluate the performance of the two divisions assuming BMI uses return on investment(ROI).

Reference no: EM13876399

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