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Business, 07.09.2021 02:40 black99girl

Astro Company owns equipment with a cost of $362,900 and accumulated depreciation of $55,100 that can be sold for $274,600, less a 4% sales commission. Alternatively, Astro Company can lease the equipment for three years for a total of $288,100, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Astro Company on the equipment would total $15,600 over the three year lease. a. Prepare a differential analysis on February 18, as to whether Astro Company should lease (Alternative 1) or sell (Alternative 2) the equipment.

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Astro Company owns equipment with a cost of $362,900 and accumulated depreciation of $55,100 that ca...
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