Cullumber Roofing is faced with a decision. The company relies very heavily on the use...
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Cullumber 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; Cullumber Roofing spent $80,400 refurbishing the lift. It has just determined that another $49,500 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $211,000. 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 $115,000 to $88,200 each year. Cullumber Roofing could also rent out the new lift for about $12,500 per year. The old lift is not suitable for rental. The old lift could currently be sold for $31,000 if the new lift is purchased. The new lift and old lift are estimated to have salvage values of zero if used for another 6 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
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Cullumber 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; Cullumber Roofing spent $80,400 refurbishing the lift. It has just determined that another $49,500 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $211,000. 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 $115,000 to $88,200 each year. Cullumber Roofing could also rent out the new lift for about $12,500 per year. The old lift is not suitable for rental. The old lift could currently be sold for $31,000 if the new lift is purchased. The new lift and old lift are estimated to have salvage values of zero if used for another 6 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 