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Compute the ROI for each division. Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected

Compute the ROI for each division.image text in transcribed

Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected operating data for the three divisions are as follows: Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets Division A Division B Division C S 1,255,000 S 920,000 898,000 652,000 53,100 41,500 8,300,000 1,930,000 3,215,000 776,000 64,000 48,000 675,000 52,000 41,000 Wescott is considering an expansion project in the upcoming year that will cost $5 million and return $450,000 per year. The project would be implemented by only one of the three divisions. Required 1. Compute the ROI for each division. (Do not round your intermediate calculations. Enter your answers as a whole percentage, (i.e., 0.123 should be entered as 12%.)) ROI Division A Division B Division C

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