Please help.

PERFORMANCE MANAGEMENT 25 marks Jackson Co is a large manufacturing entity specializing in the construction of solar panels. Historically, the company has used only performance measures to assess its performance. The company is split into two divisions, X and Y. One focuses on production for residential customers and the other for commercial customers. Each of the divisions is managed by a divisional manager who has the power to make all investment decisions within the division The cost of capital for both divisions is 10%. Historically, investment decisions have been made by calculating the return on investment (ROI) of any opportunities and at present, the return on investment of each division is 15%. A new manager who has recently been appointed in Division X has argued that using residual income (RI) to make investment decisions would result in better goal congruence throughout the company. Each division is currently considering the following separate investments: Capital required for investment Sales generated from investments Net profit margin Project for Div X $ 90 million 55 million 25% Project for Div Y $ 40 million 15 million 35% The company is seeking to maximize shareholders' wealth Required: (a) Calculate both the return on investment and the residual income of the new investment for each of the two divisions and comment on your results considering the new manager's thoughts mentioned above. (10 marks) (b) Wholefood Stores is a well-established chain of supermarkets here in Jamaica. There are five stores in the chain, two in Kingston, and the others in Montego Bay, Mandeville, and Ocho Rios. Each store operates as an autonomous business unit that reports back to the Head Office in Kingston As a result of the autonomous management arrangement, there are inconsistencies in policies regarding staff compensation, ad hoc pricing of goods, procurement inefficiencies, and poor communication flow between stores. The management team at the Head Office is considering an upgrade to the existing computer system to one that is fully networked to link all databases onto one server at the Head Office. The managers of the various stores are more skeptical and are reluctant to consider enhancing the system Required: Considering the inconsistencies mentioned, discuss five issues involved in upgrading the existing information system with reference to the business environment and the decision- making process (15 marks)