Question

Poblemas Antas Diferencial x ® Poblemas Análisis Diferencial pdf + n/bbcswebdav/pid 16625101 dt content-rid:1000874641/courses/202010.4736A/Poblemas 20A mas fixed Clarge Cover The Coca-Cola Com R Analisis fundament. DIFFERENTIAL ANALYSIS M NI122.5900 1. Badonsky Manufacturing needs to obtain a gear-cutting machine, which can be purchased for $75,000 Badonsky estimates that repair maintenance insurance, and property tax expense will be $20,000 for the machine's five-year life. At the end of the machine's life, it will have no salvage value. As an alternative, Badonsky can lease the machine for five years for $18,000 per year. If the machine is leased, Badonsky is required to pay only for routine maintenance on the machine, which is estimated to be $8.000 over the machine's life. All other costs will be paid by the lessor Prepare a differential analysis to determine whether Badonsky should purchase or lease the machine

Answer 1

Defferential Analyses Purchase gear- Lease gear- Cutting machine cutting machine Purchase price $ 75,000 Repair, maintenance, ensurance, and property tax expenses $20,000 (ii) Lease expenses 5 years) $ 90,000 ($ 18.000 * 5) ) Maintenance expenses on leased $8000 machine Total cost $ 95,000 $ 98,000

Badonsky should purchase the machine as it is beneficial for Badonsky. The total cost of lease is $98000 and total purchase cost is $95000. It means Badonsky can save ($98000 - $95000) $3000 by purchasing the machine.