Old Elevator New Elevator Purchase price $123,600 $180,300 Estimated salvage value Estimated useful life 6 years 5 years Depreciation method Straight-line Straight-line Annual operating expenses other than depreciation: Variable $35,100 $12,800 Fixed 22,300 8,200 (c) Your answer is partially correct. Try again. Using incremental analysis, determine whether the old elevator should be replaced. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Retain Old Elevator Replace Old Elevator Net Income Increase (Decrease) Variable operating costs 175500 64000 111500 Fixed operating costs 1 11500 41000 70500 New elevator cost 123600 T 180300 (56700) Salvage on old elevator 118340 (118340) Totals 310600 403640 25300 The old elevator should be replaced. Old Elevator New Elevator Purchase price $123,600 $180,300 Estimated salvage value Estimated useful life 6 years 5 years Depreciation method Straight-line Straight-line Annual operating expenses other than depreciation: Variable $35,100 $12,800 Fixed 22,300 8,200 (c) Your answer is partially correct. Try again. Using incremental analysis, determine whether the old elevator should be replaced. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Retain Old Elevator Replace Old Elevator Net Income Increase (Decrease) Variable operating costs 175500 64000 111500 Fixed operating costs 1 11500 41000 70500 New elevator cost 123600 T 180300 (56700) Salvage on old elevator 118340 (118340) Totals 310600 403640 25300 The old elevator should be replaced