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Le Coq au Vin restaurant is part of the Fin Restaurateurs Associes (FRA), a corporation that owns multiple mid to upscale restaurants throughout the United States. The general manager of Le Coq au Vin plans to retire in two years. The manager receives a bonus based on the restaurant's ROI, which is currently 11%. The kitchen ranges of Le Coq au Vin are rather old, and the manager must decide whether to replace them. The new ranges would cost $30,000 and would last 10 years. They would have no salvage value. The old kitchen rages are fully depreciated and have no trade-in value. FRA uses straight-line depreciation for all assets. The new ranges, being new and more efficient, would save the restaurants $5,000 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 11%. FRA's weighted average cost of capital is 6%. FRA is not subject to any income taxes. 1. Should FRA replace the kitchen ranges at Le Coq au Vin? Why or why not? 2. Assume that "investment" is defined as average net long-term assets after depreciation. Compute the project's ROI for each of its first five years. If Le Coq au Vin manager is interested in maximizing his or her bonus, would the manager replace the ranges before he or she retires? Why or why not? 3. What can FRA do to entice the manager of Le Coq au Vin to replace the kitchen ranges before retiring