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

10. Las sulation in its building M16-15. Relevant Costs for Equipment Replacement Decision Dr. Helle paid $50,000 for X-ray equipment four years ago. The equipment wase a useful life of 10 years from the date of a Technological advances have made the n I advances have made the machine purchased four years ago obsole cquisition with annual operatin apected the financial aspects of replacing obsolese but still functional machine, Dr. Heller's accountant prepared the following he obsole vage value. An improved X-ray device incorporating the new technology cost of $55.000 and annual operating cost six years before it, too, is obsolete. Asked to analyze the financial aspec s of $21,000. The new machine is expec costs of $320 is available at an mial over these numbers, the company's manager rejected the proposal. to hae Six-year savings [532,000-$21,000) 61 to last on REQUIRED Perform an analysis of relevant costs to dete $66,000 (55,000 (30,000 $(19,000 rmine whether the manager made the correct detisot