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Prepare an incremental analysis to determine if Current Designs should purchase the new rotomold oven, assuming that the average price for natural gas over the

Prepare an incremental analysis to determine if Current Designs should purchase the new rotomold oven, assuming that the average price for natural gas over the next 10 years will be 50.70 per therm

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Qurrent Designs faces a number of important decisions that require incremental analysis. Current Designs is always working to identify ways to increase efficiency while becoming more ervironmentally conscious. During a recent brainstormine session, one employee sugzested to Diane Buswell, controller, that the company should consider replacing the current rotomold oven as a way to realize savings from reduced energy consumption. The oven opentes on natural gas, using 18,700 therms of natural gas for an entire year. A new, energy-efficient rotomold oven would operate on 16,500 therms of natural gas for an entire year. After seelang out price quotes from a few suppliers, Diane determined that it would cost approximately $275,000 to purchase a new, enerzy-efficient rotomold oven. She determines that the expected useful life of the new oven would be 10 years, and it would have no salvape value at the end of its useful life. Current Designs would be able to sell the current oven today for $11,000. Otherwise, its remaining useful life is estimated at 10 years with a zero salvage value. (a) Prepare an incremental analysis to determine if Current Designs should purchase the new rotomold oven, assuming that the average price for natural gas over the noxt 10 years will be 50.70 per therm. (Enter decrease in net income then enter with a negotive Sen preceding the number or porentheik es-15,000 or (15,000)j

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