Question 34 of 50 1.58/2 estimates that both lifts would have useful lives of 5 years. The new lift is more efficient and thus would reduce operating expenses from $115,000 to $88,200 each year. Cullumber Roofing could also rent out the new lift for about $12,500 per year. The old lift is not suitable for rental. The old lift could currently be sold for $31,000 if the new lift is purchased. The new lift and old lift are estimated to have salvage values of zero if used for another 5 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 $ $ $ 134000 Repair costs 49500 i i 49500 Rental revenue i -62500 i 62500 New machine cost i 211000 i -211000 Sale of old machine -31000 31000 Total cost $ $ $ 66000 Should company repair or replace the equipment? The equipment should be replaced