My Home CengageNOWv2| Online teach x omimskeAssignment/takeAssignmentMain.do?invokera&takeAssignmentSessionLocator &inprogress=false newo Book Show Me How Differential Analysis for a Lease or Buy Decision Print tem Update 1 Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,100. The freight and installation costs for the equipment are $600. If purchased, annual repairs and maintenance are estimated to be $420 per year over the four-year useful life of the equipment. Alternatively, Sloan can lease the equipment from a domestic supplier for $1,580 per year for four years, with no additional costs. Prepare a differential analysis dated December 3, to determine whether Sloan should lease (Alternative 1) or purchase (Alternative 2) the machine. (Hint: This is a "lease or buy decision, which must be analyzed from the perspective of the machine user, as opposed to the machine owner.) If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Lease Equipment (Alt. 1) or Buy Equipment (Alt. 2) December 3 Lease Equipment (Alternative 1) Buy Equipment (Alternative 2) Differential Effect on Income (Alternative 2) Revenues Costs: Purchase price Freight and installation Repair and maintenance (4 years) Lease (4 years) Income (loss) goodg Feedback Check My Work Compare the lease costs for 5 years with the buying costs for 5 years (purchase price, freight and installation, and repair and maintenance). Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. Learning Objective 1.1 Check My Work Next All work saved. Email Instructor Save and Exit Submit Assignment for Grading