Darcy 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, Darcy Roofing spent $76,800 refurbishing the lift. It has just determined that another $45,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $190,500. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $25,600 per year. Darcy Roofing could also rent out the new lift for about $11,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $28,000 if the new lift is purchased. Prepare an incremental analysis for the life of the machines showing whether the company should replace the equipment.

	Retain Equipment	Replace Equipment	Net Income (Decrease)
Operating Expenses	$__________	$__________	$__________
Repair Costs	$__________	$__________	$__________
Rental Revenue	$__________	$__________	$__________
New machine cost	$__________	$__________	$__________
Sale of old machine	$__________	$__________	$__________
Total cost	$__________	$__________	$__________