15. Java, Inc has bought a new server and is having to decide what to do with the old one. The cost of the old server was originally $60,000 and has been depreciated $45,000. The company has received two offers that it must consider. One offer was made to purchase the equipment outright for $18,500 less a 5% sales commission. The other offer was to lease the equipment for $7,000 for the next five years but the company will be required to provide maintenance and insurance totaling $3,000 per year. What offer should Java, Inc. accept? a $2,425 in favor of leasing b. Reject both offers c. $11,500 in favor of selling d $16,500 in favor of leasing 16. Security Fire Alarm is currently buying 50,000 motherboard from MotherBoard's Inc at a price of $65 per board. It was suggested at the last manager's meeting that the company should consider making its own boards. The costs to make the part are as follows: Direct Materials $32 per unit, Direct labor $10 per unit, Variable Factory Overhead $16.00, Fixed Costs for the plant would increase by $75,000. As the financial advisor, what would you recommend? a. Buy - $75,000 more in profits b. Make - $275,000 increase in profits c. Buy - $275,000 more in profits d. Make - $350,000 increase in profits