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Finch, Inc., has purchased a new server and must decide what to do with the old one. The cost of the old server was originally

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Finch, Inc., has purchased a new server and must decide what to do with the old one. The cost of the old server was originally $60,000 and has been depreciated $45,000. The company has received two offers. One offer was to lease the equipment for $7,000 for the next five years, but the company will be required to provide maintenance and insurance totaling $3,000 per year. The other offer was made to purchase the equipment outright for $18,500 less a 5% sales commission. Prepare a differential analysis. If required, use a minus sign to indicate a loss. Differential Analysis Lease (Alternative 1) or Sell (Alternative 2) Server Differential Lease Server Sell Server Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues $ Costs Profit (loss) $_ $ $ Which offer should Finch, Inc., accept? Lease

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