Differential Analysis for a Lease$-$or$-$buy Decision

costs.

from the perspective of the equipment user, as opposed to the equipment owner.$)$ If an amount is zero, enter $"0".$

Differential Analysis

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

February $12$

Line Item Description

$($Alternative $1)($Alternative $2)($Alternative $2)$

Costs:

Purchase price

$

$

Freight and installation

Repair and maintenance $(6$ years$)$

Lease $(6$ years$)$

Total costs

s

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