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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 C $ 1,205,000 $1,300,000 $1,338,000 745,000 955,000 972,000 84,000 72,000 73,000 68,000 61,000 61,000 11,760,000 2,870,000 4,717,000 Wescott is considering an expansion project in the upcoming year that will cost $7.3 million and return $664,000 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. 4-6. 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 Req 4A Req 4B Reg 5 Reg 6 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 96 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 ROL 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 Req 4A Reg 48 Reg 5 Reg 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 C 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. Req 1 Reg 2 Req3 Reg 4A Reg 48 Reg 5 Reg 6 Rank the divisions according to the ROI and residual income of each. Rank Division A Division B Division C 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 Req 4A Req 4B Reg 5 Req6 Compute the return on investment on the proposed expansion project. (Round your percentage answer to 2 decimal places, (I.e. 0.1234 should be entered as 12.34%.)) Return on Investment of Proposed Expansion Project % 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. Req 1 Reg 2 Req3 Reg 4A Req 48 Ress Reg 6 Without any additional calculations, state whether the proposed project would increase or decrease each division's ROI. Division A Division B Division C al division Complete this question by entering your answers in the tabs below. Real Req 1 Reg 2 Reg 3 Reg 4A Reg 4B Reqs 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, (.e., 0.1234 should be entered as 12.34%.)) ROI Residual Income (Loss) Division A % Division B % Division C % Reg 6

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