Instructions D'Amato Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,831. The freight and installation costs for the equipment are $554. Il purchased, annual repairs and maintenance are estimated to be $415 per year over the four-year useful le of the equipment. Alternatively, D'Amato can lease the equipment from a domestic supplier for $1,745 per year for four years, with no additional costs. Required: A. Prepare a differential analysis dated December 11 to determine whether D'Amato should tease (Alternativo 1) or purchase (Alternative 2) the equipment. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "o". A colon () will automatically appear if required. (Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner.) B. Determine whether the D'Amato should lease (Ahernative 1) or purchase (Alternative 2) the equipment Differential Anal Instructions Labels and Amount Descriptions $5 Labels fro Cash flows from operating activities Costs Amount Descriptions Freight and installation Import tariff Income (loss) Lease (4 years) Purchase price Repair and maintenance (4 years) Revenues Total costs Instructions Labels and Amount Descriptions Differential Analysis A. Prepare a differential analysis dated December 11 to determine whether D'Amato should lease (Alternative 1) or purchase (Alternative 2) the equipment Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "o". A colon () will automatically appear it required. Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner. Differential Analysis Lease Equipment (Alternative 1) or Buy Equipment (Alternative 21 December 11 Lease Equipment Buy Equipment Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) 3 4 Label 5 5 7 8 erental Analysis Final Question B. Determine whether the D'Amato should lease (Alternative 1) or purchase (Alternative 2) the equipment. 7 The company is indifferent since the result is the same regardless of which alternative is chosen Buy the equipment Lease the equipment