8. Performance management Question16 - refer to lecture notes practice question 1 Question 17 - Additional question (Adapted Regular exam 2020) Jet-mah Cc business is organised into divisions. For operating purposes, each division is regarded as an investment centre, with divisional mangers enjoying substantial autonomy in their selection of investment projects. Divisional managers are rewarded via a remuneration package which is linked to a return on investment (ROI) performance measure. The ROI calculation is based on the net carry value of assets at the beginning of the year. Although there is a high degree of autonomy in investment selection, approval to go ahead has to be obtained from group management at the head office in order to release the finance. 10 Division X is currently investigating three independent investment proposals. If they appear acceptable, it wishes to assign each a priority in the event that funds may not be available to cover all three. Group finance staff assesses the cost of capital to the company at 15%. The details of the three proposal are as follows: Ignore tax and residual values. Depreciation is straight line over asset life, whick in each case. 11/12