Differential Analysis for a Lease or Buy Decision Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,040. The freight and installation costs for the equipment are $640. If purchased, annual repairs and maintenance are estimated to be $410 per year over the four-year useful life of the equipment. Alternatively, Sloan can lease the equipment from a domestic supplier for $1,420 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 Analysis Lease Equipment (Alt. 1) or Buy Equipment (Alt. 2) December 3 Lease Equipment Buy Equipment Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Purchase price 3,040 $ -3,040 Freight and installation 640 -640 Repair and maintenance (4 years) 1,420 x -1,420 x Lease (4 years) QUID) Income (loss) Feedback Determine whether Sloan should lease (Alternative 1) or buy (Alternative 2) the equipment