Managerial Decision Making/Which alternative should Sarah choose to pay for the cake machine? Why

Managerial Decision Making
World
of Cakes Ltd, a cake retailer, is considering leasing a machine from a
leasing company to make cakes that have photographic images on them. The
company is considering leasing one of three alternative machines:
1.
The Kacky Cake Machine makes cakes with lower quality ingredients. This
machine is manufactured overseas in a factory that produces a lot of
pollution. The costs per cake are: Ingredients $4 per 500gram, $4 labour
and $0.40 packaging. It costs $10,000 per year to lease the Kacky Cake
Machine.