E11-32 (similar to) Oma'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 th selection for irrelevant items. For relevant items, leave the box blank, do not select a label) Old Oven New Oven Why Irrelevant Original cost Irrelevant Relevant Sunk cost Accumulated depreciation Irrelevant Not applicable Sunk cost Book value Irrelevant Not applicable ll Sunk cost Current disposal value Relevant | Not applicable Installation cost Irrelevant Relevant Sunk cost Annual operating cost Relevant Relevant Terminal disposal value Irrelevant Irrelevant Dont differ i Data Table A A A Old Oven New Oven Original cost 25,000 $ 46,000 Accumulated depreciation $ 6,200 Not acquired yet Book value $ 24,000 Not acquired yet Current disposal value $ 19,000 Not acquired yet Installation cost Not applicable $ 2,100 Annual operating cost $ 15,000 $ 8,000 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) $ Ignore the effect of income taxes and the time value of money. Print Done Done