The NT Group has two major divisions:

a) Newspapers owns four leading newspapers on four continents

b) Television owns three major networks on three continents

The summary financial data are as follows:-

Operating Income Revenues Total Assets Division 20X1 20X2 20X1 20X2 20X1 20X2 Em Em Em Em Em Em Newspapers 900 1.100 4 500 4 600 4,400 4,900 Television 130 160 6,000 6,400 2,700 3,000Division managers have an annual bonus plan based on Divisional ROI. Senior executives from divisions reporting increases in ROI from prior years are automatically eligible for a bonus. Senior executives of divisions reporting a decline in the division ROI have to provide a very persuasive argument to be eligible for a limited bonus. Joseph Yang the manager of the Newspaper Division is considering a proposal to invest $200 million in fast-speed printing presses with colour print options. She estimated that these printing presses will add an additional $30 million to the division's operating profits. (Show the impact of this proposal on the 20X2 figures) The NT Group has a cost of capital of 12%%