Summary financial data (in millions of shillings) for years 2000 and 2001 is given as follows:

Operating income

Revenue

Total assets

Year

2000

2001

2000

2001

2000

2001

Sh.

Sh.

Sh.

Sh.

Sh.

Sh.

Newspapers

900

1,100

4,500

4,600

4,400

4,900

Television

130

160

6,000

6,400

2,700

3,000

Film studios

220

200

1,600

1,650

2,500

2,600

The manager of each division has an annual bonus plan based on his division's return on investment (ROI).The company defines ROI as operating income divided by total assets.Senior executives from divisions reporting increases in the division's ROI from the prior year are automatically eligible for a bonus.Senior executives of division reporting a decline in ROI have to provide persuasive explanations for the decline.In order to be eligible for any bonus, and they are limited to 50% of the bonus paid to the division managers reporting an increase in ROI.

J. Kanyama, manager of the newspapers division is considering a proposal to invest Sh. 200 million in a fast speed printing process with colour options.The estimated increment to year 2002 operating income would be Sh. 30 million.The media group has a 12% required rate of return for investments in all three divisions.