A company uses Return on Investment (ROI) to assess divisional performance but is considering switching to Residue Income (RI). The company's cost of capital is 14%. Last year, Division A achieved an ROI of 16% and is expecting a similar figure this year. The performance of the Manager of division A is currently measured based upon the ROI. The company is considering purchasing a new piece of production equipment for Division A. It requires an investment of 850,000 but is expected to generate profits of 120,000 per annum. Required: I. Advise whether the manager of Division A is likely to accept or reject the investment using the current method of assessing using ROI. II. Will this decision be a benefit to or detrimental to the company? III. Would the manager's decision remain the same if performance was measured on Residue Income (RI)