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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: Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets Division Division Division $ 1,225,000 $1,224,000 $1,250,000 757.000 899.000 988,000 80,000 68,000 69.000 64,000 57.000 57.000 11,068,000 2,682,000 4,409,000 Wescott is considering an expansion project in the upcoding year that will cost $6.9 million and return $620,000 per year. The project would be implemented by only one of the three divisions. Required: 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. 4-a. Compute the return on investment on the proposed expansion project. 4-b. Is this an acceptable project? 5. Without any additional calculations, state whether the proposed project would increase or decrease each division's ROI 6. Compute the new ROI and residual income for each division if the project was implemented within that division Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req 48 Reg 5 Reg 6 Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.) Residual incomo (Loss) Division A

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