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Martha's Bakery is thinking about replacing the convection oven with a now, more energy-efficiont model. Information roliated to the old and new orens follows: (Crek

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Martha's Bakery is thinking about replacing the convection oven with a now, more energy-efficiont model. Information roliated to the old and new orens follows: (Crek the foon to view the information relatod to the old and new orans.) Read the tequirements Requirement 1 and 2 . Which of the costs and benofts above are relevant to the decision to replace the oven? What informasion is imelevant? 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 irfelovant. (Make a seiecton for each ilem in ihe Old Oven and 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 Martha'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 2 years later? 5. At what purchase price would Martha's Bakery be indifferent between purchasing the new oven and continuing to use the old oven

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