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West Comany has three divisions A, B, and C. The compnay has a hurdle rate of 8%. Selected operating data for the three divisions are

West Comany has three divisions A, B, and C. The compnay has a hurdle rate of 8%. Selected operating data for the three divisions are as follows.

A: (Sales Rev: $1,210,000) (Cost of Good Sold: 748,000) (Miscellaneous operating expense: 83,000) (Interest and txes: 67,000) (Average invested assets: 11,587,000)

B: (sales Rev: 1,281,000) (Cost of goods sold: 941,000) (miscellaneous operating expense: 71,000) (Interest and taxes: 60,000) (Average invested assets: 2,823,000)

C: (sales rev: 1,316,000) (COG'S: 956,000) (miscellaneous oerating exspense: 72,000) (interesting and taxes: 60,000) (average invested assets: 4,640,000)

"Wescott is considering an expansion project in the upcoming year that will cost $7.2 million and return653,000 per year. the project would be implemented by only one of the three divisions.

Q1 Compute the ROi for each division: A: ?%, B: ?%, C: ?%

Q2 Compute the residual income(loss) for each division: Division A: ?, B: ?, C: ?

Q3 Compute the return on investment on the propsed expansion Project. ROi on Project: ?%

Q4 Compute the new ROi and residual income for each division if the project was implemented within that division.

Division A ROi: ?% & Residual Income(loss): ?

Division B ROi: ?% & residual Income(loss) ?

Division C ROi: ?% & residual income(loss) ?

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