Differential Analysis for a Lease or Buy Decision Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas...

Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,160. The freight and installation costs for the equipment are $640. If purchased, annual repairs and maintenance are estimated to be $390 per year over the four-year useful life of the equipment. Alternatively, Sloan can lease the equipment from a domestic supplier for $1,460 per year for four years, with no additional costs.

Prepare a differential analysis dated December 3, to determine whether Sloan should lease (Alternative 1) or purchase (Alternative 2) the machine. (Hint: This is a "lease or buy" decision, which must be analyzed from the perspective of the machine user, as opposed to the machine owner.) If an amount is zero, enter "0". Use a minus sign to indicate a loss.

Differential AnalysisLease Equipment (Alt. 1) or Buy Equipment (Alt. 2)December 3Lease Equipment (Alternative 1)Buy Equipment (Alternative 2)Differential Effect on Income (Alternative 2)Revenues$$$Costs:Purchase price$$$Freight and installationRepair and maintenance (4 years)Lease (4 years)Income (loss)$$$

Determine whether Sloan should lease (Alternative 1) or buy (Alternative 2) the equipment.

Differential Analysis for a Lease or Buy Decision Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,160. The freight and installation costs for the equipmentare $640. If purchased, annual repairs and maintenance are estimated to be $390 per year over the four-year useful life of the equipment. Alternatively, Sloan can lease theequipment from a domestic supplier for $1,460 per year for four years, with no additional costs. Prepare a differential analysis dated December 3, to determine whether Sloan should lease (Alternative 1) or purchase (Alternative 2) the machine. (Hint: This is a "lease orbuy" decision, which must be analyzed from the perspective of the machine user, as opposed to the machine owner.) If an amount is zero, enter "0". Use a minus sign toindicate a loss. Differential AnalysisLease Equipment (Alt. 1) or Buy Equipment (Alt. 2)December 3Lease Equipment (Alternative 1) Buy Equipment (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $:] $:] $:] Costs: Purchase price $:] $:]Freight and installation C] C]Repair and maintenance (4 years) C] C]Lease (4 years) C] C]C] Income (loss) $:] $ Determine whether Sloan should lease (Alternative 1) or buy (Alternative 2) the equipment.v Lease the equipment Buy the equipment