Business, 13.11.2019 18:31, jacobiroberts18

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 $40,000 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 6 years. the new lift is more efficient and thus would reduce operating expenses by about $20,000 per 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 $25,000 if the new lift is purchased.
prepare an incremental analysis for the life of the machines showing whether the company should replace the equipment.

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Darcy roofing is faced with a decision. the company relies very heavily on the use of its 60-foot ex...