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Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of8 percent. Selected operating data for the three divisions are

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Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of8 percent. Selected operating data for the three divisions are as follows: Division A Division B Division C Sales revenue $ 1,255,666 $ 926,666 $ 898,666 Cost of goods sold 776,666 675,666 652,666 Miscellaneous operating expenses 64,666 52,666 53,166 Interest and taxes 48,666 41,666 41,566 Average invested assets 8,366,666 1,936,666 3,215,666 I Wescott is considering an expansion project in the upcoming year that will cost $5 million and return $450,000 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. 4b. 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. Complete this question by entering your answers in the tabs below. Compute the ROI for each division. (Do not round your intermediate calculations. Enter your answers as a whole percentage, (i.e., 0.123 should be entered as 12%.)) - - - Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Req 6 Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.) Residual income (Loss) Division A Division B Division CComplete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Req 6 Rank the divisions according to the ROI and residual income of each. Rank Division A Division B Division CComplete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Req 6 Compute the return on investment on the proposed expansion project. Return on Investment of Proposed Expansion Project %\fComplete this question by entering your answers in the tabs below. Without any additional calculations, state whether the proposed project would increase or decrease each division's ROI. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 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 division. (Loss amounts should be entered with a minus sign. Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.)) ROI Residual Income (Loss) Division A % Division B % Division C %

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