Current Attempt in Progress

Darcy 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, Darcy Roofing spent $$60,000$ refurbishing the lift. It has just determined that another $$50,000$

of repair work is required. Alternatively, it has found a newer used lift that is for sale for $$170,000.$ 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 $$90,000$ to

$$60,000$ each year. Darcy Roofing could also rent out the new lift for about $$10,000$ per year. The old lift is not suitable for rental. The

old lift could currently be sold for $$15,000$ 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$.(45).)$

Should company repair or replace the equipment?