$($a$)$ Explain ANY FOUR $(4)$ benefits of decentralisation in organisations.

$($b$)$ Sunshine Inns is part of a large chain of hotels owned by PWF Hotels. Sunshine Inns has full control

over its pricing, buying and investment strategies. It has the following results for $2023$:

The manager of Sunshine Inns has the option to invest in a new swimming pool for the hotel. The investment

will require an extra $$900,000$ of assets but is expected to generate an additional $$250,000$ of operating

profit.

PWF Hotels currently assesses its divisions on an ROI basis. It pays a bonus to the divisional manager who

achieves the highest ROI during the year. PWF Hotels is a highly geared company and borrows at an average

interest rate of $15\%.$

Required:

As the manager of Sunshine Hotels, justify why would you invest in the swimming pool project and does the

use of ROI lead to "goal congruence" within the whole firm? And would changing to residual income help?