please help hurry is for exam...! California Pizza replaced the convection oven two years ago. Today, the
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Question:
please help hurry is for exam...! California Pizza replaced the convection oven two years ago. Today, the company found that a new convection oven that cooks more quickly with lower operating expenses was available. 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:
a. What costs are sunk? List them. b. What costs are relevant? List them. c. What are the net cash flows over the next 4 years assuming the company purchases the new convection oven? Show your computation. d. What other items should the company consider when making this decision?
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