Q3. (20 marks) HeshSlice Lonsdale Inc. replaced the convection oven just six months ago. Today, Commercial Ovens Manufacturing announced the availability of a new convection oven that cooks more quickly with lower operating expenses. The company 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: ExistingNew Oven Original cost$70,000$65,000 Accumulated depreciation$3,500 Current salvage value$57,000 Remaining life5 years5 years Annual operating expenses$11,000$9,500 Disposal value in 5 years$0$0 Required: a.What costs are sunk? I b.What costs are relevant? c What are the net cash flows over the next 5 years assuming the bakery purchases the new convection oven? d.What other items should the company consider when making this decision