Manusys is considering whether to repair or replace its manufacturing equipment. It is now in need of repairs that will cost $$43,000.$ It has three years left

of its useful life. Manusys must determine whether to go ahead with the repairs, or to purchase a new machine to replace the old one. A new, more

efficient machine costs $$287,000$ and will have an $3-$year useful life, after which it will have no salvage value. The new machine would reduce variable

manufacturing costs from $$178,000$ to $$142,000$ annually. As well, the old machinery can be sold for $$63,000.$

Do not enter dollar signs or commas in the input boxes.

Use the negative sign for values that must be subtracted.

Indicate repair or replace using the drop$-$down list.

a$)$ Prepare a differential analysis based on the remaining useful life $(3$ years$)$ of the old machinery without consideration of the time value of money or

depreciation expense on the asset.

b$)$ Should Manusys repair or replace its manufacturing equipment?