b/ Patricia, a sub unit manager of Pizzapizza, replaced the convection oven just six months ago. Today, Turbo Ovens Manufacturing announced the availability of a new turbo oven that cooks faster with lower operating expenses. Patricia is considering the purchase of this faster, lower-operating cost turbo oven to replace the existing one they recently purchased. Selected information about the two ovens is given below: Existing New Turbo Oven $60,000 $50,000 $ 5,000 $40,000 Original cost Accumulated depreciation Current salvage value Remaining life Annual operating expenses Disposal value in 5 years Required: 5 years $10,000 i. What costs are sunk? 5 years $ 7,500 $ 0 $ 0 (7 marks) ii. What costs are relevant? iii. What are the net cash flows over the next 5 years assuming Patricia purchases the new turbo oven? iv. What other items should Patricia consider when making this decision