Bleefl Corporation manufactures furniture in several One of the machines that the patio furniture divisions, including the patio furniture division. The division uses to manufacture the furniture is rather manager of the patio furniture division plans to retire in 2 old, and the manager must decide whether to years. The manager receives a bonus based on the replace it. division's ROI- WhiCh '5 currently 80/0- 0 (Click the icon to view information on the replacement decision.) Dnnnl I-lnn uuuuu : nnnnn I-n Requirement 1. Should Blee Corporation replace the machine? Why or why not? Bleefl would be better off if they did replace the machine. Its cost of capital and the IRR of the investment indicate that this is a positive net present value project. Requirement 2. Assume that "investment" is defined as average net long-term assets (that is, after depreciation) during the year. Compute the project's ROI for each of its first 5 years. If the patio furniture manager is interested in maximizing his bonus, would he replace the machine before he retires? Why or why not? Begin by computing the project's ROI for each of its first five years. Select the formula to compute ROI, then enter the amounts for year 1 and calculate the project's ROI. Then compute the ROI for the rest of the remaining years. (Enter the ROI as a percent rounded to two decimal places, X.XX%) (_)= More info The new machine would cost $20,000 and would last 10 years. It would have no salvage value. The old machine is fully depreciated and has no trade-in value. Bleefl uses straig htline depreciation for all assets. The new machine, being new and more efcient, would save the company $3,000 per year in cash operating costs. The only difference between cash flow and net income is depreciation. The internal rate of return of the project is approximately 8%. Blee Corporation's weighted-average cost of capital is 5%. Blee is not subject to any income taxes. Requirements 1. Should Bleefl Corporation replace the machine? Why or why not? 2. Assume that "investment" is dened as average net long-term assets (that is, after depreciation) during the year. Compute the project's ROI for each of its first 5 years. If the patio furniture manager is interested in maximizing his bonus, would he replace the machine before he retires? Why or why not? 3. What can Bleefl do to entice the manager to replace the machine before retiring? Bleefl Corporation manufactures furniture in several division uses to manufacture the furniture is rather divisions, including the patio furniture division. The old, and the manager must decide whether to manager of the patio furniture division plans to retire in 2 replace it. years. The manager receives a bonus based on the i (Click the icon to view information on the division's ROI, which is currently 8%. replacement decision.) Read the requirements. . . . Requirement 1. Should Bleefl Corporation replace the machine? Why or why not? Bleefl would be better off if they did replace the machine. Its cost of capital and the IRR of the investment indicate that this is a positive net present value project. Requirement 2. Assume that "investment" is defined as average net long-term assets (that is, after depreciation) during the year. Compute the project's ROI for each of its first 5 years. If the patio furniture manager is interested in maximizing his bonus, would he replace the machine before he retires? Why or why not? Begin by computing the project's ROI for each of its first five years. Select the formula to compute ROI, then enter the amounts for year 1 and calculate the project's ROI. Then compute the ROI for the rest of the remaining years. (Enter the ROI as a percent rounded to two decimal places, X.XX%) Measure of income Measure of investment ROI Year 1 %