1. A commercial oven with a book value of $24,420 has an estimated remaining 5 year life. A proposal is offered to sell the oven for $7,630 and replace it with a new oven costing $43,630. The new machine has a 5-year life with no residual value. The new machine would reduce annual maintenance costs by $8,390.

   Provide a differential analysis on the proposal to replace the commercial oven.

   Annual maintenance cost reduction	$fill in the blank 1
   Number of years applicable	fill in the blank 2
   Total differential decrease in cost	$fill in the blank 3
   Proceeds from sale of equipment	fill in the blank 4	$fill in the blank 5
   Cost of new equipment		fill in the blank 6
   Net differential decrease in cost from replacing equipment		$fill in the blank 7