Comfy Corporation manufactures furniture in several divisions, including the Patio Furniture division. The manager of the Patio Furniture division plans to retire in 2 years. The manager receives a bonus based on the division's ROI, which is currently 15%. One of the machines the Patio Furniture division uses to manufacture furniture is rather old, and the manager must decide whether to replace it. The new machine would cost $50,000 and would last 10 years. It would have no salvage value. The old machine is fully depreciated and has no trade-in value Comfy uses straight-line depreciation for all assets. The new machine, being new and more efficient, would save the company $10,000 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 15%. Comfy Corporation's weighted average cost of capital is 4%. Comfy is not subject to any income taxes. Read the requirements. Requirement 1. Should Comfy Corporation replace the machine? Why or why not? Comfy would be better off if they didreplace the machine. lts 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 after depreciation. Compute the project's ROl 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? Select the formula to compute ROl, then enter the amounts for year 1 and calculate the project's ROl. Then compute the ROl for the rest of the remaining years. (Enter the ROI as a percent rounded to two decimal places. XXX%) Measure of income Measure of investment- ROI 5,000 47,500 10.53 % Year 1 Year 2 Year 3 Year 4 Year 5 -X Requirements 1. Should Comfy Corporation replace the machine? Why or why not? 2. Assume that "investment" is defined as average net long-term assets after depreciation. Compute the project's ROl 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 Comfy do to entice the manager to replace the machine before retiring