Cullumber 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, Cullumber Roofing spent $80,400 refurbishing the lift. It has just been determined that another $49,500 for repair work is required. Alternatively, it has found a newer used lift that is for sale for $211,000. 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 $115,000 to $88,200 per year. Cullumber Roofing could also rent the new lift for about $12,500 per year. The old lift is not suitable for rental. The old lift could currently be sold for $31,000 if the new lift is purchased. The new lift and old lift is estimated to have salvage value of zero if used for another 6 years Prepare an incremental analyzing showing whether the company should repair or replace the equipment.

Prepare an incremental analyzing showing whether the company should repair or replace the equipment