Part I: Serena is the owner of a small, local restaurant that is considering replacing their convection oven which was purchased just six months ago. Recently, Magic Ovens Incorporated announced the availability of a new convection oven that cooks more quickly with lower operating expenses. Serna is considering the purchase of this faster, lower-operating cost convection oven to replace the existing one they recently purchased. Selected information about the two ovens is given below: New Oven $38,000 Original cost Accumulated depreciation Current salvage value Remaining life Annual operating expenses Annual service contract Disposal value in 5 years Existing $40,000 $ 5,000 $25,000 5 years $10,000 $ 800 $ 0 5 years $ 7,250 $ 800 $ 0 Respond to each of the following questions: A. What costs are irrelevant? What costs are relevant? Explain why. B. What are the net cash flows over the next 5 years assuming the restaurant purchases the new convection oven? C. List at least 3 other items Serena should consider when making this decision. Be creative and explain why those items would be relevant to your decision-making process