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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

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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 $1,295,000 $1,072,000 $ 1,074,000 780,000 61,000 49,000 3,793,000 800,000 72,000 56,000 9,684,000 787,000 60,000 49,000 2,306,000 Wescott is considering an expansion project in the upcoming year that will cost $5.8 million and return $532,000 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. Round your percentage answer to 2 decimal places, (i.e. 0.1234 should be entered as 12.34%.)) ROI DivisionA Division EB Division 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.) Residual income Loss DivisionA DivisionEB DivisionC 3. Rank the divisions according to the ROl and residual income of each Rank DivisionA DivisionEB DivisionC

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