Brownie'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 Requirement 1 and 2. Which of the costs and benefits above are relevant to the decision to replace the oven? What information is irrelevant? Why is it irrelevant? Begin by determining whether each item is relevant or irrelevant for this decision. If an item is irrelevant, select why it is irrelevant. (Make a selection for each item in the Old Oven and New Oven columns. In the "Why Irrelevant' column, only make a selection for irrelevant items. For relevant tems, leave the box blank, do not select a label.) Old Oven New Oven why Irrelevant Original cost Accumulated depreciation Book value Current disposal value Installation cost Annual operating cost Terminal disposal value Choose from any drop-down list and then click Check Answer. 4 parts 4 remaining Clear All Check Answer i Data Table Requirements Old Oven New Oven Original cost 27,000 S 50,000 Accumulated depreciation $ 6,100 Not acquired yet Book value $ 16,000 Not acquired yet Current disposal value 11,000 Not acquired yet Installation cost Not applicables 2,700 Annual operating cost 11,000 $ 4,000 Useful life 10 years 8 years Current age 2 years O years Remaining useful life 8 years 8 years Terminal disposal value in 8 years) S 0 S 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 Brownie'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 two years later? 5. At what purchase price would Brownie's Bakery be indifferent between purchasing the new oven and continuing to use the old oven? $ Print Done Print Done