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Differential Analysis for a Lease-or-buy Decision Moffett Industries is considering new equipment. The equipment can be purchased from an overseas supplier for $3, 280 .
Differential Analysis for a Lease-or-buy Decision Moffett Industries is considering new equipment. The equipment can be purchased from an overseas supplier for $3, 280 . The frelght and installation costs for the equipment are $610. If purchased, annual repairs and maintenance are estimated to be $390 per year over the 4 -year useful life of the equipment. Alternatively, Moffett Industries can lease the equipment from a domestic supplier for $1,420 per year for 4 years, with no additional costs. a. Prepare a differential analysis dated Febniary 12 to determine whether Moffett Industries should lease (Alternative 1) or purchase (Aternative 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 ". b. Determine whether Moftett should lease (Aiternative 1) or buy (Aternative 2) the equipenent
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