Exercises E12-1 Lease or sell decision Orwell Industries is considering selling excess machinery with a book value of $300,000 (original cost of $950,000 less accumulated depreciation of $650,000) for $145,000 less a 5% brokerage commission. Alternatively, the machinery can be leased out for a tota $215,000 for five years, after which it is expected to have no residual value. During the pe riod of the lease, Orwell Industries' costs of repairs, insurance, and property tax expenses are expected to be $80,000. Note: The spreadsheet icon Indicates an Excel template is available on the student companion site, Chapter 12 Differential Analysis and Product Pricing a. Prepare a differential analysis report for the lease or sell decision. b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain