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Nescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent Selected operating data for the three divisions

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Nescott 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: Wescott is consldering on expansion project in the upcoming year that will cost $6.7 million and return $598,000 per year. The project would be implemented by only one of the three divisions. Required: 1. Compute the ROI for each division. 2. Compute the residual income for each division. 3. Rank the divisions according to the ROI and residual income of each. 4-a. Compute the return on investment on the proposed expansion project. 4-b. Is this an acceptabie project? 5. Without any additional colculations, state whether the proposed project would increase or decrease each clivision's ROL. 6. Compute the new ROI and residual income for each division if the project wos implemented within that division. Compute the return on investment on the proposed expansion project. Note: Enter vour answer as a percentane rounded to two dectmat ptocts, (1.e., 0.1234 should be entered as 12.34 Complete this question by entering your answers in the tabs below. Compute the ROI for each division. Note: Enter your answers as a percintage rounded to two decimal places, (1.e., 0.1234 should be entered as 12.34%.) Rank the divisions according to the ROI and residual income of each. pute the new ROI and residual income for each division if the project was implemented within that division. 234 should be entered as 12.34%.). Enter your answers in whole dollars not in millions. ompute the residual income for each division. loter t, oss amounts shoutd bie findicated by a minus sign. Enter your answers in whole dollars not in millions

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