Compute the economic value added by each division

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Game, LLP, is evaluating the performance of three divisions: Rock, Scissors, and Paper. Using the data that follow, compute the economic value added by each division, and comment on each division's performance.


Rock

scissors

Paper

Sales

$50,000

$50,000

$50,000

After-tax operating income

$5,000

$5,000

$20,000

Total assets

$25,000

$12,500

$25,000

Current liabilities

$5,000

$5,000

$5,000

Cost of capital

15%

15%

15%

Reference no: EM13889807

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