Please help on 1, 2, and 6. May have to zoom in computer screen / web browser to see question.

WRONG ANSWER BELOW: not sure, maybe because of rounding error

Answer 1.

Return on Investment = Net profit after taxes / Average Invested assets

Division A:

Return on Investment = $367,000 / $8,300,000 Return on Investment = 4.42%

Division B:

Return on Investment = $152,000 / $1,930,000 Return on Investment = 7.88%

Division C:

Return on Investment = $151,400 / $3,215,000 Return on Investment = 4.71%

Answer 2.

Residual Income = Net Profit after taxes hurdle rate*Average invested assets

Division A:

Residual Income = $367,000 8%*$8,300,000 Residual Income = -$297,000

Division B:

Residual Income = $152,000 8%*$1,930,000 Residual Income = -$2,400

Division C:

Residual Income = $151,400 8%*$3,215,000 Residual Income = -$105,800

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 Division A Division B Division C Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets $ 1,255,000 S 920,000 S 898,000 652,000 53,100 41,500 8,300,000 930,000 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 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