10. Danosa Inc is faced with a decision. The company relies on the use of its 60-foot extension lift for work on large homes and commercial properties. Last year, the company spent $60,000 refurbishing the lift. Another $35,000 of repair work is required. Alternatively, Danosa has found a newer used lift that is for sale for $170,000. The company estimates that both the old and new lifts would have useful lives of five years. However, the new lift is more efficient and thus would reduce operating expenses by about $40,000 per year. The company could also rent out the new lift for about $3,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $25,000 if the new lift is purchased. Prepare an incremental analysis that shows whether the company should repair or replace the equipment.