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Requirement 3. Should Brownie's Bakery purchase the new oven? Provide support for your answer. Begin by selecting the relevant items and then entering the appropriate
Requirement 3. Should Brownie's Bakery purchase the new oven? Provide support for your answer. Begin by selecting the relevant items and then entering the appropriate cost in each respective column. Be sure to total the relevant costs. (if a leave the input field empty, do not enter a zero. Use a minus sign or parentheses for any costs.) Keep old oven New oven Total Total Total relevant costs iking about replacing the convection oven with a new, more energy efficient model Information related to the old and new ovens follows: ew the information et Requirements d Brownie's Bakery relevant items and th mpty, do not enter a z (If an input field is not 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 Brownie's Bakery purchase the new over? Provide support for your answer 4. Is there any conflict between the decision model an IRANIAVOS manager who has purchased the "old" oven and is considering replacing it only 2 years later? 5. At what purchase price would Brownie's Bakery be indifferent between purchasing the new oven and continuing to use the old oven? Print Done Old Oven New Oven YP $ 23,000 $ 6,500 $ (If an input field is th a za Original cost Accumulated depreciation Book value Current disposal value Installation cost Annual operating cost Useful life $ 20,000 $ 16,000 Not applicable $ $ 15,000 45,000 Not acquired yet Not acquired yet Not acquired yet 2.400 9,000 Current age 3 years 2 years 6 years 0 $ 6 years O years 6 years 0 Remaining useful life Terminal disposal value (in 6 years) $ number Print Done Clear All Check AI
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