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Bultercup Bakery is thinking about replacing the convection oven wilh a new, more energy-efficient model. Information relaled to Ihe okd and new overis follows; (Cick
Bultercup Bakery is thinking about replacing the convection oven wilh a new, more energy-efficient model. Information relaled to Ihe okd and new overis follows; (Cick the ioon to view the information related to the old and new ovens.) Read the requirements. Requlrement 1 and 2. Which of the costa and benefits above are relevant to the decision to replace the oven? What information is irrelevant? Why is it irrelevant? selection for irrelevant items. For relevant items, leave the input field blank; do not select a label.) Data table 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 Buttercup 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 2 years later? 5. At what purchase price woukd Buttercup Bakery be ind ifterent between purchasing the now oven and contiruing to use the old oven
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