Ivanhoe Roofing is faced with a decision. The company relies very heavily on the use of its $60-$foot extension litt for work on large homes and commercial properties Last year, vanhoe Roohng spent $$74,400$ refurbishing the lift it has just determined that another $$41,500$ of repair work is required. Alternatively, it has found a newer used lirt that is for sale for $$17,000.$ The company estimates that both lifts would have useful lives of $6$ years. Thenew lift is more elficient and thus would reduce operating expenses by about $$24,800$ per year. Ivanhoe Roofing could also rent out the new lift for about $$10,500$ per year. The old lift is not sultable for rental. The old lift could currently be sold for $$26,000$ if the new lift is purchased.

Prepare an incremental analysis showing whether the company should repair or replace the equipment $($Enter negotive amounts using either a negathe stim preceding the number es $45$ or parentheses es $(45)$

Retatn

Equipment

Opersting expenses

Repair costs

Rental revenue

New machine cost

Sale of old machine

Totalcost

Should company repair or replace the equipment?

The equipment be replaced.

Replace

Equipment

$5$

$!$

Net Income

Increase $($Decrease$)$

$

$1$