Comfy Corporation manuales futwe in several dito, cading the Patio Furniture divion. The manager of the Patio Furniture dison plans to retire in two years. The manager receives bonus based on the ovom RO which is current 10% One of the machines that the Patio Furniture divisions to manufacture the future is rather old, and the manager must decide whether to replace the new machine would cost $45.000 and would last 10 years it would have to salvage at the old machine is fully deprecated and has no trade in value. Conty uses tight ne depreciation for an assets. The new machine, being new and more efficient would save the company 57.000 per year in cath operating costsThe only difference between cash fow and net income depreciation. The internal rate of return of the project is approamately 10% Comfy Corporation's weighted average cost of capital is 4. Comty is not subject to any income 12 Requirement 1. Should Comity Corporation, teplace the machine'? Why or why nort Conty would be better or replaced ne machine. Its cost of capital and the IRR of the westment indicate that this is a positive net persent value project Requirement 2. Assume that verliners defined as etage net longtem assets aher depreciation Compute the projects Bottor each year of Year 10 Year 5 e Patio Furniture manager in Wested in mang the bonus would be replace the machine before he retres Why or why not? Select me formula to compare Roland men enter the amounts for Your 1 and cause me projects ROX Then compune me Rol for the rest of the remaining years (Enner ine or as a percent Founded in two decat places, XXS) Measure of income Measure of investment >X 100 ROI Years Year 2 Years Vad Years X 100 e Patio Furniture manager is interested in manche bonus would be replace the machine before he retres? Wat why not? The manager want to replace the machine tore ting because he is currently earning a return of 10% and replacement of the machine was 45.000 1 4.500 10 1 >100 X 100 X100 Requirements. What can comly go to entice the manager to replace the machine before retning O Comity.could use song wrm the man shorter Rotor se Box and some other long term measures to evaluate the Patio Futute dion to create goat congruence OB Comfy should give the manager a monetary bonus for replacing the machine in order to create gou congruence OC Racing the machine would maize the managers bonusso Comity does not need to do anything extrato entice the manager Choose from any list or enter any number in the wput fields and then continue to the next question Time Remaining Next