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	$	1,235,000	$	1,186,000	$	1,206,000
Cost of goods sold		763,000		871,000		876,000
Miscellaneous operating expenses		78,000		66,000		67,000
Interest and taxes		62,000		55,000		55,000
Average invested assets		10,722,000		2,588,000		4,255,000

Wescott is considering an expansion project in the upcoming year that will cost $6.7 million and return $598,000 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)Compute the return on investment on the proposed expansion project

4)Compute the new ROI and residual income for each division if the project was implemented within that division.