Question: I only need help with Req 4A and Req 6 thank you. Wescott Company has three divisions: A, B, and C. The company has a







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 Division B Division C $ 1,275,000 $ 996,000 $ 986,000 788,000 731,000 716,000 68,000 56,000 57,000 52,000 45,000 45,000 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. 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 6. Compute the new ROI and residual income for each division if the project was implemented within th Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Recr 1 Req 2 Req3 Req 4A Req 4B Req 5 Req 6 Compute the ROI for each division. (Do not round your intermediate calculations. Round your percentage an places, (l.e. 0.1234 should be entered as 12.34%.)) ROI 4.66 % Division A Division B Division 9.87 % 6.11 Ron Req 2 > 2. Lompute une resigual income for each Givision. 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 pa 2 Reg 3 Reg 4 Req 48 Reqs Req 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. Req 4A Reg 4B Reg 5 Reg 6 Req1 Reg 2 Red 3 Rank the divisions according to the ROI and residual income of each. Rank Division Division B Division 1 20 2. Compute une residual income ror each UiVision 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 Rej 4 Req 48 Reqs Reg 6 Compute the return on investment on the proposed expansion project. (Round your percentage answer to 2 decimal places, (ie. 0.1234 should be entered as 12.34%.)) Return on Investment of Proposed Expansion Project 9.00 % 2. Compute une residual income for each Civision, 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 Req 4A Red B Reqs Reg 6 Is this an acceptable project? Is this an acceptable project? Yes 2. compute une resicual 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 Reg 2 Req3 Reg 4A Req 48 Ras 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 Reg 3 Reg 4A Req 4B Req5 Rects 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 C 6.25% 9.16 % 7.80% Residual Income (Loss) $ (244,360) $ 95,560 $ (9,800)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
