Sandhill 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, Sandhill Roofing spent $78,000 refurbishing the lift. It has just determined that another $46,500 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $197,000. 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 $26,000 per year. Sandhill Roofing could also rent out the new lift for about $11,500 per year. The old lift is not suitable for rental. The old lift could currently be sold for $29,000 if the new lift is purchased. 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 $ $ $ Repair costs Rental revenue New machine cost Sale of old machine Total cost $ Should company repair or replace the equipment? The equipment be replaced. $ $