2. In the past 10 years, 'Snackandgo', a sandwich chain, has expanded to more than 500 stores. Two of the stores, Finchley and Morden, are among the fastest-growing. Both are considering expanding their menus to include pizza. Installation of the necessary ovens and purchase of the necessary equipment would cost 180,000 per store. This equipment is expected to last five years. The pizza expansion would result in additional sales of 140,000 each year for five years and expected cash expenses of 80,000 each year. The current data for the stores before the possible installation of the pizza ovens is as follows: Finchley 000 Morden 000 Investment Non-current assets at net book value 600 1,450 Net current assets 290 290 Total investment 890 1,740 Net profit before tax 196 264 Depreciation charged in profit calculation 300 207 Average age of fixed assets 8 years 3 years Price index when assets purchased 160 180 Managers' annual bonuses are currently determined based on maintaining or improving ROI. The company's cost of capital is currently 14 per cent. The current price index is 200. a. Calculate the ROI for each store using the existing financial position. b. Calculate the ROI of each store (if the pizza ovens are installed) for the first year of their operation. c. Discuss the suitability of the current bonus structure in creating goal congruence. Describe and illustrate the effect of using the RI financial measure and discuss its advantages and disadvantages. d. Assume that the company proposes to move to current value accounting, whereby fixed assets and associated depreciation would be updated by the price index each year. Explain the effect this change would have on your calculations in (a).