Chapter 25 - Homework eBook Show Me How . EX.25.02.ALGO Differential Analysis for a Lease-or-buy Decision Moffett Industries 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 2. EX.25.06 estimated to be $380 per year over the 4-year useful life of the equipment. Alternatively, Moffett Industries can lease the equipment from a domestic supplier for $1,380 per year for 4 years, with no additional costs. 3. EX.25.07.ALGO a. Prepare a differential analysis dated February 12 to determine whether Moffett Industries 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 "0". 4. EX.25.09.ALGO Differential Analysis Lease (Alt. 1) or Buy (Alt. 2) Equipment 5. EX.25.11.ALGO February 12 Lease Buy Differential 6. EX.25.21.ALGO Line Item Description Equipment Equipment Effect [Alternative 1) (Alternative 2) (Alternative 2) 7. PR.25.01A Costs: Purchase price 8. MAD.25.02 Freight and installation Repair and maintenance (4 years) Lease (4 years) Total costs b. Determine whether Moffett should lease (Alternative 1) or buy (Alternative 2) the equipment. Check My Work 3 more Check My Work uses remaining. Next Progress: 1/8 items Assignment Score: 0.0% Save and Exit Submit Assignment for Grading