Hi please help me with this entire problem Ivanhoe 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, Ivanhoe Roofing spent $$67,800$ refurbishing the lift. It has just determined that another

$$32,000$ of repair work is required. Alternatively, it has found a newer used lift that is for sale for $$136,000.$ 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

$$22,600$ per year. Ivanhoe Roofing could also rent out the new lift for about $$8,000$ per year. The old lift is not suitable for rental. The

old lift could currently be sold for $$20,000$ 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$.(45).)$

Repair costs

Rental revenue

New machine cost

Sale of old machine

Total cost

Should company repair or replace the equipment?

The equipment

be replaced.