French co is a manufacturing company and uses Return on Investment (ROl) to assess the performance of its divisional managers. Its current target of ROl is 5% which is equivalent to its cost of capital. One of Sports Co divisions is division C, which had achieved a ROI of 17% last year. The purchase of new machine has been proposed by a member of staff working in division C. It is estimated that the new machine would generate a profit of 90,000per annum for an investment of 850,000 Required: 1. Using ROl as the current method of performance assessment, discuss whether the manager of Division C is likely to accept or reject purchase of the new machine and why? I. Will this decision be a benefit to or detrimental to the company? I. Would the manager's decision remain the same if the performance was assessed on Residue Income (RI) and why.