Show me now Calculator Lease or Sell Felix Company owns a machine with a cost of $366,600 and accumulated depreciation of $54,100 that can be sold for $277,000, less a 4% sales commission. Alternatively, the machine can be leased by Felix Company for three years for a total of $287,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Felix Company on the machine would total $16,000 over the three years. Prepare a differential analysis on January 12, as to whether Felix Company should lease (Alternative 1) or sell (Alternative 2) the machine. Differential Analysis Lease Machine (Alt. 1) or Sell Machine (Alt. 2) January 12 Lease Machine (Alternative 1) Sell Machine (Alternative 2) Differential Effect on Income (Alternative 2) Revenues Costs Income (Loss) Should Felix Company lease (Alternative 1) or sell (Alternative 2) the machine