1. Differential Analysis for a Lease or Buy Decision Laredo Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $120,000. The freight and installation costs for the equipment are $1,500. If purchased, annual repairs and maintenance are estimated to be $2,200 per yea th over the six-year useful life of the equipment. Alternatively, Laredo Corporation can lease the equipment from a domestic supplier for $25,000 per year for six years, with no additional costs. Question Content Area Prepare a differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment. (Hint: This is a "lease or buy" decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner). If an amount is zero, enter "0". Differential Analysis Lease (Alt. 1) or Buy (Alt. 2) Equipment Costs: Purchase price Freight and installation Lease Equipment (Alternative 1) March 15 Buy Equipment Differential Effects (Alternative 2) (Alternative 2) Repair and maintenance (6 years) Lease (6 years) Total costs Question Content Area Determine whether Laredo should lease (Alternative 1) or buy (Alternative 2) the equipment