Current Attempt in Progress Blossom 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, Blossom Roofing spent $79,200 refurbishing the lift. It has just determined that another $48,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $204,000. 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 $113,000 to $86,600 each year. Blossom Roofing could also rent out the new lift for about $12,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $30,000 if the new lift is purchased. The new lift and old lift are estimated to have salvage values of zero if used for another 6 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).) Retain Equipment Replace Equipment Net Income Increase (Decrease) Operating expenses $ $ $ Repair costs Rental revenue New machine cost Sale of old machine Total cost $ Should company repair or replace the equipment? The equipment eTextbook and Media be replaced. Save for Later $ $ Attempts: 0 of 3 used Submit Answer