CIM (DECEMBER 2015)

Discuss whether ROI is providing a fair basis for calculating the managers’ bonuses and
the problems arising from its use at CIM Co for the year ended 31 August 20X5.

Here is the part of ans i dont understand:

This is largely attributable to the fact that Division N invested $6.8m in new equipment during the year. If this investment had not been made, net assets would have been only $10.04m
and the ROI for Division N would have been 19.62%.

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In a) ROI
The capital employed we calculated was 16840 for Division N and controllable profit 1970.
so ROI=1970/16840*100 .
now if this investment (Division N invested $6.8m in new equipment) was not made , the NCA will reduce by 6.8m . but what about the cash/bank in CA will it increase? but ofc we don’t know how they finance it ? It could be a loan too right? Could you explain how to calculate capital employed that gave 19.62% ans?