Health Scan, Inc., paid $50,000 for X-ray equipment four years ago. The equipment was expected to have a useful life of 10 years from the date of acquisition with annual operating costs of $35,000. Technological advances have made the machine purchased four years ago obsolete with a zero sal?-?vage value. An improved X-ray device incorporating the new technology is available at an initialcost of $55,000 and annual operating costs of $21,000. The new machine is expected to last only six years before it, too, is obsolete. Asked to analyze the financial aspects of replacing the obsoletebut still functional machine, Health Scan's accountant prepared the following analysis. After look?-?ing over these numbers, the company's manager rejected the proposal

RequiredPerform an analysis of relevant costs to determine whether the manager made the correct decision