PA10-3 Evaluating Managerial Performance, Proposed Project Impact on Return on Investment, Residual Income LO 10-4, 10-5 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 tollows Division B Division C $ 1,225,000$1,224,000$ 1,250,000 908,000 69,000 57,000 11,088,0002682,000 4,409.000 Sales revenue Cost of goods sold 757,000 80,000 64,000 899,000 68,000 57,000 Interest and taxes Average investod assets Wescottis considering an expansion project in the upcoming year that will cost $6 9 million and return $620,000 per year. The project wouild be implemented by only one of the three divisions Required: Comue the R for each division (o not round your intermediate calculations Round your percentage answer to 2 decimal places ue. 0.1234 should be entered as 12.34%.)) Division A Division E Division C 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.) Residual income Loss) Division A Division B Division C 3. Rank t he divisions according to the ROI and residual income of each . Rank Division A Division B Division C centage answer to 2 decimal places. (Le, 0.1234 should be entered as 12.34%.)) 4-a comp ute the return on investment on the proposed expansion project (Round your per 4-b. Is this an acceptable project? Yes O No 5. Without any additional celculations, stete whether the proposed project would increase or decrease each division's RO Division A Division Division C our ROl Compute the new ROl and residuel inc ercentage answers to 2 decimal places, (Le, 0.1234 come for each division if the project wes implemented within thet division. (Loss amounts should be entered with a minus sign. Enter y should be entered as 12.34%.)) ROI Division A Division Division C