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	$	1,290,000	$	1,053,000	$	1,052,000
Cost of goods sold		797,000		773,000		764,000
Miscellaneous operating expenses		71,000		59,000		60,000
Interest and taxes		55,000		48,000		48,000
Average invested assets		9,511,000		2,259,000		3,716,000

Wescott is considering an expansion project in the upcoming year that will cost $5.7 million and return $521,000 per year. The project would be implemented by only one of the three divisions.

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.

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
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

3. Rank the divisions according to the ROI and residual income of each.

	Rank
Division A
Division B
Division C