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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 folows Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxer Average invested assets S 1.255,000 920,000898,000 652,000 53,100 41,500 76,000 64,000 48,000 675,000 52.000 41,000 300,000 1,930,000 3,215,000 Wescott is considering an expansion project in the upcoming year that will cost $5 milion and returm $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 Le 0.129 should be entered as 12% Oivision A Division B Division C 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.) Division A Division DivisionC 3. Rank the divisions according to the ROI and residual income of each Rank Division A Division B Division C 4-a. Compute the return on investment on the proposed expansion project Return on Investment of Proposed Expansion Project 4-b. Is this an acceptable project? Yes No 5. Without any additional calculations, state whether the proposed project would increase or decrease each division's RO Division A Division B Division C 6 Compute the new R and residual income for each division if the pr ect was implemented whn that division percentage answers to 2 decimal places, (Le.. 0.1234 should be entered as 12.34%.)) Loss amounts should be entered with a minus sign. Enter your R Division A Division B Division C

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