Marcia Consumer Products Has Several Divisions, Including the Education Division

Multiple Choice

Marcia Consumer Products has several divisions, including the Education Division and the Recreation Division. Data on the two divisions are shown here:
$\begin{array}{|l|r|r|} \hline & \text { Education Division } & \text { Recreation Division } \\\hline \text { Current ROI } & 9.2 \% & 10.0 \% \\\hline \text { Current WACC } & 8.0 \% & 8.0 \% \\\hline \text { Operating income } & \$ 110,000 & \$ 200,000 \\\hline \text { Effective tax rate } & 20.0 \% & 20.0 \% \\\hline \text { Average total assets } & \$ 1,200,00 & \$ 2,000,000 \\\hline \text { Current liabilities } & \$ 30,000 & \$ 30,000\\\hline \end{array}$
How much is the EVA for the Education Division?

A) $12,890
B) $4,600
C) ($5,600)
D) ($12,750)