Differential Analysis for a Lease or Buy Dersion Giroy Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for 53,360. The freight and installation costs for the equipment are 5660. I purchased, annual repairs and maintenance are estimated to be $430 per year over the four-year life of the equipment. Alternatively, Gilroy can leave the operent from a domestic supplier for $1,440 per year for four years, with no additional costs. Prepare a differential analysis dated December 11 to determine whether Gilroy should se terve 1) or purchase (Aternative 2) the equipment. He: This is a one-or-buy decision, which must be analyzed from the perspective of the equipment uter, as opposed to the equipment owner) an amount is zero, entero Differential Analysis Lease Machine (Alt. 1) or Buy Machine (Alt. 2) December 11 Lease Machine Buy Machine Differential Effect (Alternative 1) (Alternative 2) on Income (Alternative 2) Revenues $0 50 $0 Costs Purchase price Freight and installation Repair and maintenance (years) Lease (4 years) Income (Loss) Determine whether Gilroy should lease (Alternative 1) or buy (Alternative 2) the equipment