Question: 5. Without any additional calculations, state whether the proposed project would increase or decreas division's ROI. 6. Compute the new ROI and residual income for

 5. Without any additional calculations, state whether the proposed project would
increase or decreas division's ROI. 6. Compute the new ROI and residual
income for each division if the project was implemented within 1 division

5. Without any additional calculations, state whether the proposed project would increase or decreas division's ROI. 6. Compute the new ROI and residual income for each division if the project was implemented within 1 division Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Req 4A Req 4B ER-45 Reg 6 Without any additional calculations, state whether the proposed project would increase or decrease each div Division A Division B Division C 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 e division's ROI. 6. Compute the new ROI and residual Income for each division If the project was implemented within than division. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Reg 4A Req 48 Req 5 Compute the new ROI and residual income for each division if the project was implemented within that division amounts should be entered with a minus sign. Enter your ROI percentage answers to 2 decimal places. (i... 0.1 entered as 12.34%.)) ROI Residual Income (Loss) Division A % Division B % Division C 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: Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets Division A Division B Division $ 1,300,000 $ 1,091,800 $ 1,696,888 883,880 801,000 796,000 73,888 61,000 62,000 57,000 50,000 50,688 9,857,880 2,353,000 3,870,000 Wescott is considering an expansion project in the upcoming year that will cost $5.9 million and return $543,000 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 implemeled within that division

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