Lease or Sell Decision Pike Industries is considering selling excess machinery with a book value of $150,000 (original cost o out for a total of $107,500 for five years, after which it is expected to have no residual value. During a. Prepare a differential analysis report for the lease or sell decision. PIKE INDUSTRIES Proposal to Lease or Sell Machinery Differential Analysis Report Differential revenue from alternatives: Revenue from lease W Proceeds from sale Differential revenue from lease Differential cost of alternatives: Repairs, insurance, and property tax expenses from lease Commission on sale Differential cost of lease Net differential loss from lease alternative b. Based on the data presented, which is the most appropriate plan of action? 5150,000 (original cost of $475,000 less accumulated depredation of $325,000) for $72,500 less a 5% brokerage commission. Alternatively, the machinery can be le no residual value. During the period of the lease, Hike Industries' costs of repairs, insurance, and property tax expenses are expected to be 500,000 ni 0 0 00 co