sloan corporation is considering new equipment. the equipment can be purchased from an overseas supplier for $125500. tge freight and installation costs for the equipment are $1600. if purchased, annual repairs and maintenance are estimated to be $2500 per year over the 5 year useful life of the equipment.

alternatively, sloan can lease the equipment from a domestic supplier for $30000 per year for five 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 equipment.