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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: Wescott is considering an expansion project in the upcoming year that will cost 55.4 miltion and feturn $488,000 per year The project would be implemented by only one of the three divisions. Aequired: 1. Compute the ROI for each division 2. Compute the residual income for eoch division 3. Rank the divisions according to the RO and residual income of each A.a. Compute the return on investment on the progesed empansion project. 4.b. Is this on acceptable project? 5. Without any additional colculotions, stote whether the proposed project would incre ase or decrease each division's AOL 6. Compute the new ROI and residual income tor each diwsion if the project was implemented within that divslion

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