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 Division Division Sales revenue $ 1,275,000 $ 996,000 $ 986,000 Cont of goods sold 788,000 731,000 716,000 Miscellaneous operating expenses 68,000 56,000 57,000 Interest and taxes 52,000 45,000 45,000 Average invested assets 8,992,000 2,118,000 3,485,000 Wescott is considering an expansion project in the upcoming year that will cost $5.4 million and return $488,000 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 Answer is complete but not entirely correct. 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 the division Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req,3 Req 4A Reg 4B Reqs 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 5.00 Division Division B Division 10.00 % 6.00 % 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4A Reg 4B Req 5 Reg 6 Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.) Residual Income (Loss) Division $ (300,360) A Division $ 39,560 B Division $ (65,800) 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req2 Red 3 Reg 4 Reg 4B Reg 5 Reg 6 Rank the divisions according to the ROI and residual income of each. Rank 30 Division A Division B Division Reg 2 Reg 4A > 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Req 4A Req 48 Reg 5 Reg 6 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 9.03 % 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 eq 48 Reg 5 Req6 Is this an acceptable project? Is this an acceptable project? No 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Req 4B Reqs 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 Increase Decrease Increase 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Reg 4B Reg 5 Red 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 Division A Division B Division 6.00 % 9.00 % Residual Income (Loss) $ (244,360) $ 95,560 $ (9,800) 8.00 %