Currently under consideration is the purchase of a new street cleaner. The controller has estimated that the citys old street cleaning machine would last another five years. A new street cleaner which also would last for five years can be purchased for $50,740. It would cost the city $14,000 less each year to operate the new equipment than its cost to operate the old machine. The expected cost savings with the new machine are due to lower maintenance cost. Thus, the new street cleaner will cost $50,740 and save $70,000 over its five year life. Since the $70,000 in cost savings exceeds the $50,740 acquisition cost the controller concluded to purchase the new machine. Assume discount rate of 10%. Comment on the decision made by the controller. Do you think her analysis and decision is correct?