Obj. 1 Chapter 10 Differential Analysis and Product Pricing uipment are $1,600. If om a domestic sup- EX 10-2 Differential analysis for a lease or buy decision Sloan Corporation is considering new equipment. The equipment can be purchased from Overseas supplier for $125,500. The freight and installation costs for the equipment are $1.60 purchased, annual repairs and maintenance are estimated to be $2,500 per year over the five useful life of the equipment. Alternatively, Sloan can lease the equipment from a domestic plier for $30,000 per year for five years, with no additional costs. Prepare a differential analy dated December 3 to determine whether Sloan should lease (Alternative 1) or purchase (Alter tive 2) the equipment. 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. Obj. 1 cu di continued product