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Differential Analysis for a Leaseror-Buy Decision Pompeo Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $95,000. The freight
Differential Analysis for a Leaseror-Buy Decision Pompeo Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $95,000. The freight and instaliation costs for the equlpment are 54,500 . If purchased, annual repairs and maintenance are estimsted to be $3,600 per year over the 4 -year useful life of the equipment. Alternativelv, Pompeo can lease the equipment from a domestic supplier for $29,200 per year for 4 years, with no additional costs. Prepare a differential analysis dated December 11 to determine whether Pompeo should Lesse Equipment (Miternative 1) or Buy Equipment (Aternative 2). Aint: 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 "o*, For those boxes in which you must enter subtracted or negative numbers use a minus sign. Determine whether Pompeo should lease (Alternative 1 ) or buy (Alternstive 2 ) the equipenent. 2 mose Check My Work usest remaining
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