Finch, Inc

question 25

Essay

Finch, Inc., has purchased a new server and must decide what to do with the old one. The cost of the old server was originally $60,000 and has been depreciated $45,000. The company has received two offers. One offer was to lease the equipment for $7,000 for the next five years, but the company will be required to provide maintenance and insurance totaling $3,000 per year. The other offer was made to purchase the equipment outright for $18,500 less a 5% sales commission. Which offer should Finch, Inc., accept? Prepare a differential analysis report to support your answer.

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Definitions:

Taste Sensations

The experiences of flavor perceived by the taste buds, including sweet, sour, salty, bitter, and umami.

Brain

The organ in the head of humans and other vertebrates responsible for thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.

White

A color that results from the reflection of all the rays of visible light, symbolizing purity or cleanliness in many cultures.

Outermost Layer

The surface layer or the most external layer of an object or structure, such as the epidermis on the human body or the outer layer of a planet.