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please answer both questions Differential Analysis for a Lease or Buy Decision Laredo Corporation is considering new equipment. The equipment can be purchased from an

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Differential Analysis for a Lease or Buy Decision Laredo Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,100. The freight and instaliation costs for the equipment are $660. If purchased, annual repairs and maintenance are estimated to be $380 per year over the four-year useful life of the equipment. Aiternatively, Laredo Corporation can lease the equipment from a domestic supplier for $1,520 per year for four years, with no additional costs. Prepare a differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 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.) If an amount is zero, enter " 0n. Determine whether Laredo should lease (Aiternative 1) or buy (Aternative 2) the equipment. Product A is normally sold for $45 per unit. A special price of $32 is offered for the export market. The variabie production cost is $23 per unit. An additional export tariff of 16% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order. a. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2 ) the special order, If required, round your answers to two decimal places. If an amount is zero, enter "0". Festhock T Check My Work To determine whether or not to accept or reject the special order, subtract the additional costs from the add tional rewenues. b. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)

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