The chief financial officer (CFO) of New Age Fashion Ltd. has just received a request from a project manager to authorize an expenditure in the amount of £45,000. The manager states that this expenditure is necessary for the last stage development of a space navigation system, which is based on a programming language called Xtor. As a space engineer and financial manager, you know that Xtor is almost obsolete and is being replaced by alternatives that provide better cross-platform compatibility. However, the project manager insists that they should continue with the last tranche of payment because over £1.5 million has already been spent on developing this navigation system. It would be a shame to waste all the time and resources that have been invested.

Advise the CFO regarding whether she should authorize the £45,000 proposed expenditure. Use marginal cost–benefit analysis to explain your reasoning.