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please do all the requirements Ignore the effect of income taxes and the time value of money. Which of the costs and benefits above are
please do all the requirements
Oma's Bakery is thinking about replacing the convection oven with a new, more energy-etticient model. Information related to the old and now cvens 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 informabion is irrolovant? Why is it irresvant? Begin by delermining whether each item is relevant or irrelevant for this decision. If an item is imelevant, select why az is imelevant, (Mawe a sebection for each iem in the Old Oven and New Overi columns. In the Why Irrelevant column, only make a selection for irelevant items. For relevant items, leave the input feld blark, do not select a label.) Bakery is thinking about replacing the convection oven with a new, more energy-efficient model. Information related to the old and new oven ick the icon to viop Table rements. Data table rement 1 and 2. by determining w ns. In the "Why Ir ci do not select a fa 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 Oma'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 Oma's Bakery be indifferent between purchasing the new oven and continuing to use the old oven Ignore the effect of income taxes and the time value of money.
- Which of the costs and benefits above are relevant to the decision to replace the oven?
- What information is irrelevant? Why is it irrelevant?
- Should Oma's Bakery purchase the new oven? Provide support for your answer.
- 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?
- At what purchase price would Oma's Bakery be indifferent between purchasing the new oven and continuing to use the old oven?
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