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0. Company B currently has a piece of equipment that is no longer needed. The curcen company has the option to book value of the

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0. Company B currently has a piece of equipment that is no longer needed. The curcen company has the option to book value of the piece of the equipment is $12,000. The lease the equipment for the next three years for $5,500 each for $16.000. If leased, the equipment would have no residual value at the end ofthe year, or sell the equipment e no residual value at the end of the lease. The company expects that maintenance and total sh to determine if the company should sell (Alternative 1) or lease (Alternative 2) analysist the equipment. (8pts). other expenses during the lease would $2,000. Ifsold, Company B would pay a 5% commission. Prepare a differential Differential Analysis Sell (Alt. 1) or Lease (Alt. 2) Differential Effect Lease (Alt 2] on Income (Alt 2 Sell (Alt. 1 Revenues Costs Income (loss)

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