Alert for not submit AI generated answer. I need unique and correct answer. Don't try to copy from anywhere. Do not give answer in image formet and hand writing Differential Analysis for a Lease$-$or$-$Buy Decision

Gilroy Corporation is considering new equipment. The equipment can be purchased from an overseas

supplier for $$3,200.$ The freight and installation costs for the equipment are $$650.$ If purchased, annual

repairs and maintenance are estimated to be $$430$ per year over the $4-$year useful life of the equipment.

Alternatively, Gilroy can lease the equipment from a domestic supplier for $$1,580$ per year for $4$ years,

with no additional costs.

Prepare a differential analysis dated December $11$ to determine whether Gilroy should Lease Equipment

$($Alternative $1)$ or Buy Equipment $($Alternative $2).$ 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 $"0".$ For those boxes in which you must enter subtracted or negative numbers use a minus

sign.

Differential Analysis

Lease Equipment $($Alt$.1)$ or Buy Equipment $($Alt$.2)$

December $11$

Determine whether Gilroy should lease $($Alternative $1)$ or buy $($Alternative $2)$ the equipment.

Compare the lease costs for $4$ years with the buying costs for $4$ years $($purchase price, freight, and

maintenance$).$ Determine the differential effect on income of the revenues, costs, and income $($loss$)$

by subtracting alternative $1$ from alternative $2.$