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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 A Division B Division $ 1,300,000 $1,091,800 $ 1,096,000 803,600 301,000 796,000 73,000 61,000 62,000 57,600 50,000 50,000 9,857,000 2,353,000 3,870,000 Wescott is considering an expansion project in the upcoming year that will cost $5.9 million and return $543,000 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 of the project was implemented within that division Reg 1 Reg 2 Compute the ROI for each div places, (i.e. 0.1234 should be ROL Division A % Division B Division C % Reg 1 Reg 2 Compute the residual income Residual income (Loss) Division A Division B Division C Reg 1 Reg 2 Reg 3 Rank the divisions according to the ROI and Rank Division A Division B Division C Req 1 Req 2 Reg 3 Req 4A Reg 4B Req 5 RE Compute the return on investment on the proposed expansion project. (Round your percent (i.e. 0.1234 should be entered as 12.34%.)) Return on Investment of Proposed Expansion Project % nces Req 1 Req 2 Reg 3 Req 4A Req 4B Req 5 Is this an acceptable project? Is this an acceptable project? Req 1 Reg 2 Req 3 Req 4A Req 4B Reg 5 Req 6 Without any additional calculations, state whether the proposed project would increase or decrease each divi Division A Division B Division Reg 1 Req 2 Req3 Req 4A Req 4B Req 5 Reg 6 Compute the new ROI and residual income for each division if the project was implemented within that amounts should be entered with a minus sign. Enter your ROI percentage answers to 2 decimal places be entered as 12.34%.)) ROI Residual Income (Loss) % Division A Division B Division C % %

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