Carla Vista Roofing is faced with a decision. The company relies very heavily on the use of its $60-$foot extension lift for work on large

homes and commercial properties. Last year, Carla Vista Roofing spent $$77,400$ refurbishing the lift. It has just determined that

another $$45,500$ of repair work is required. Alternatively, it has found a newer used lift that is for sale for $$194,000.$ The company

estimates that both lifts would have useful lives of $5$ years. The new lift is more efficient and thus would reduce operating expenses

from $$110,000$ to $$84,200$ each year. Carla Vista Roofing could also rent out the new lift for about $$11,500$ per year. The old lift is not

suitable for rental. The old lift could currently be sold for $$28,500$ if the new lift is purchased. The new lift and old lift are estimated to

have salvage values of zero if used for another $5$ years.

Prepare an incremental analysis showing whether the company should repair or replace the equipment. $($Enter negative amounts using

either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Should company repair or replace the equipment?

The equipment

be replaced.