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Sheridan Roofing is faced with a decision. The company relies very heavily on the use of its 60 -foot extension lift for work on large

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Sheridan 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, Sheridan Roofing spent $69,600 refurbishing the lift. It has fust determined that another $34,500 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $146,000. The company estimates that both lifts would have useful lives of 5 years. The new lift is more efficient and thus would reduce operating expenses from $97,000 to $73,800 each year. Sheridan Roofing could also rent out the new lift for about $8,500 per year. The old lift is not suitable for rental. The old lift could currently be sold for $21,500 if the new lift is purchased. The new ilft 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 negatlve amounts using elther a negotlve sign preceding the number eg. -45 or parentheses e.g. (45))

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