Angelo's Bakery is thinking about replacing the convection oven with a new, more energy-efficient model. Information related to the old and new ovens follows: (Click the icon to view the information related to the old and new ovens.) Read the requirements. Data table Old Oven New Oven Original cost Accumulated depreciation Book value Current disposal value $ Installation cost 26,000 $ 6,900 14,000 8,000 Not applicable $ 46,000 Not acquired yet Not acquired yet Not acquired yet 2,800 Annual operating cost $ 10,000 $ 3,000 Useful life 10 years 7 years Current age Remaining useful life Terminal disposal value (in 7 years) 3 years 0 years 7 years 7 years 0 $ 0 Print Done Requirements Ignore the effect of income taxes and the time value of money. 1. Which of the costs and benefits above are relevant to the decision to replace the oven? 2. What information is irrelevant? Why is it irrelevant? 3. Should Angelo's Bakery purchase the new oven? Provide support for your answer. 4. Is there any conflict between the decision model and the incentives of the manager who has purchased the "old" oven and is considering replacing it only 3 years later? 5. At what purchase price would Angelo's Bakery be indifferent between purchasing the new oven and continuing to use the old oven? Print Done the "Why Irrelevant" column, only Clear all Check