Please help me answer this!

Last year (2013), Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the companys accountant to provide him with cost data on the companys elevator. This information is presented below.

Prepare a 4-year summarized income statement for each of the following assumptions:

And answer C)

C)

Using incremental analysis, determine if the old elevator should be replaced. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Retain Old Elevator

Replace Old Elevator

Net Income Increase (Decrease)\

Variable operating costs

Fixed operating costs

New elevator cost

Salvage on old elevator

Totals