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Differential Analysis for a Lease-or-sell Decision Stowe Construction Company is considering seiling excess machinery with a book vakue of $276,600 (orlinal cost of 5400,500 less

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Differential Analysis for a Lease-or-sell Decision Stowe Construction Company is considering seiling excess machinery with a book vakue of $276,600 (orlinal cost of 5400,500 less accumulated depreclation of \$121,900) for $277,800, less a 5 b brokerage commission. Atternatively, the machinery can be leased for a total of 5285,600 for 5 years, arter which it is expected to have no residual value. During the period of the lease, Stowe Construction Company's costs of repairs, insurance, and property tax expenses are expected to be 125, soo. a. Prepare a differential analyais dated Mareh 21 to determine whether Stowe Construction Compacy should lease (Altemative 1 ) or seli (Atemative 2) ehe machinern if required, use a minus agg to indicate a loss: b. On the basis of the data presented, would it be advissble to lease or seli the machinery? Differential Analysis for a Lease-or-buy Decision Moffett Industries is considering new equipment. The equipment can be purchased from an overseas supplier for $3,200. The freight and installation costs for the equipment are $500. If purchased, annual repalrs and maintenance are estimated to be $410 per ycar over the 4 year useful life of the equipment Aiternatively, Moffet Industries can lease the equipment from a domestie supplier for $1,400 per year for 4 years, with no additional costs. a. Prepare a differential analysis dated February 12 to determine whether Moffett industries should lease (Atemative 1) or purchase (Alternative 2) the equiment (Hint: This is a "lease or buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the eequipment owner) if an amcunt is aero. enter "oo". b. Determine whether Motfett should lease (Aternative 1) or buy (Aternative 2) the equigment

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