Ch 25 Problem Set 1. lease or sell

2. make or buy

3. Differential Analysis for lease or buy decision

4. Decision to Discontinue a product

Thank you!!!

Lease or Sell Felix Company owns equipment with a cost of $362,400 and accumulated depreciation of $56,800 that can be sold for $274,600, less a 4% sales commission. Alternatively, Felix Company can lease the equipment for three years for a total of $288,600, 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 equipment would total $15,100 over the three year lease a. Prepare a differential analysis on August 7 as to whether Felix Company should lease (Alternative 1) or sell (Alternative 2) the equipment. If required, use a minus sign to indicate a loss. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) August 7 Lease Differential Equipment Equipment Effects (Alternative 1) (Alternative 2) (Alternative 2)