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Differential Analysis for a Lease-or-Buy Dedsion Urban Styles Corporation is considering new equipment. The equipment can be purchased from on overseas supplier for $3,360. The
Differential Analysis for a Lease-or-Buy Dedsion Urban Styles Corporation is considering new equipment. The equipment can be purchased from on overseas supplier for $3,360. The freight and installation costs for the equipment are $630. If purchased, annual repairs and maintenance are estimated to be $420 per year over the 4-year useful life of the equipment. Alternatively, Urban Styles can lease the equipment from a domestic supplier for $1,540 per year for 4 years, with no additional costs. Prepare a differential analysis dated December 11 to determine whether Urban Styles should Lease Equipment (Aiternative 1) or Buy Equiprnent (Aternative 2). Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment-ownec if an amount is zero, enter " 0 ". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Determine whether Urban Styles should iease (Atternative 1) or buy (Altemative 2) the equipment
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