For the current year, Cara Nguyen of the Hotel Division has been given a target ROI of 35% p. She has been told that she will receive a bonus of...

c.if cara's performance is evaluated and rewarded based on RI, instead of ROI, explain why she is likely to change her mind and implement the CRS system? assume johnson industries requires an annual rate of return of 20%. support your answer with relevant calculation .

d. explain why RI is a better measure of investment centre and/or manager performance compared to ROI.

e. using the information provide in this question ,explain how performance measures targets provide a directional influence on division managers behavior.

For the current year, Cara Nguyen of the Hotel Division has been given a target ROI of 35% p.a.She has been told that she will receive a bonus of $15,000 if she meets this target.Cara is considering introducing a fully automated Central Reservation System (CRS) to enhancethe efficiency of her hotel's booking system. The automation will cost $30,000 and is expected tohave the following benefits over the next few years:Completely eliminate booking errors and reduce booking related administrative costs by$100 per month.Due to increased booking and customer handling efficiency, hotel revenue is expected toincrease by $500 per month.Cara believes that the CRS system has a positive Net Present Value.REQUIRED:a) Comment on the use of ROI to evaluate and reward Cara Nguyen's performance. Youranswer should include a discussion of :Its effectiveness in communicating each division's competitive advantage;ii)Two advantages of using ROI as a performance measure;iii)Two disadvantages of using ROI as a performance measure.b) After much consideration, Cara decided not to introduce the CRS system in the current year.Provide an explanation for Cara's decision, based on the information contained in thequestion. You must provide calculations to support your answer.