Wescott Company has three divisions: A B, and C. The company has a hurdle rate...

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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: B Division C Sales revenue Cost of goods sold Miscelaneous operating expenses nterest and taxes Average invested assets 1,285,000 $ 1,034,000 $1,030,000 748,000 59,000 47,000 ,338000 2,212,000 3,639,000 794,000 759,000 58,000 47,000 0,000 54,000 Wescott is considering an expansion project in the upcoming year that will cost $5 6 million and return $510,000 per year The project would be implemented by only one of the three divisions ired: 1. the RO for each dision Do not round your intermediate calculations. Round your percentage answer to 2 decimal places, ie 0.1234 should be entered as 1234% Division A Division B Division C 2. Compute the residual income for each division (Loss amounts should be indicated by a minus sign.) Division A Division B Division C 3. Rank the divisions according to the ROl and residual income of each Division A Division B Divicion C 4a Compute the return on investment on the proposed expansion pro ect Round your percentage answer to 2 dec mal places, ie 0.1234 should be entered as 12.34% 4 b. Is this an acceptable project? O No O Yes 5. Without any additional calculations, state whether the proposed project would increase or decrease each divIsion's ROl Division A Division B Division C , Compute the new ROI sd readual income for each deson places, (le.. 0.1234 should be entered as 12.34%-)) the popea was implemented wentat on (Loss a mounts should be entered with a ms sig. Enter Ri pecentage answers to 2 decinal Division A Division B Division C

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