$180,000 On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the tunds Invest in $180,000 of 7% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at tace value. The following data have been assembled: Cost of store equipment Lite of store equipment 16 years Estimated residual value of store oquipment $14,400 Yearly costs to operate the store, excluding depreciation of store equipment $56,170 Yearly expected revenues--years 1-8 Yearly expected revenues--years 9-16 $71,200 $86.900 Required: 1. Prepare a differential analysis as of August 1 presenting the proposed operation of the store for the 16 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). Refer to the lists of L and Amount Descriptions for the exact wording of the answer choices for text entries. For those bones in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter ' A colon ( will automatically appear if required 2. Based on the results disclosed by the differential analysis, should the proposal be accepted? 3. If the proposal is accepted, what would be the total estimated income from operations of the store for the 16 years? Labels Cash flows from investing activities Costs Amount Descriptions NE Costs to operate store Cost of equipment less residual value Gain on sale of investments Income (loss) Loss on sale of investments Revenues 1. Prepare a differential analysis as of August 1 presenting the proposed operation of the store for the 16 years (Allematve 1) as compared with investing in U.S. Treasury bonds (Alemative 2). Heter to the fests of Labels and Amount Descriptions for the exact wording of the answer chokes for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "o". A colon () ww automatically appear if required. Diterential Analysis Operate Hetal Store (Alternativo 1) or invested in U.S. Treasury Bonds (Alternative 2) August 1 Operate Retail Invested in US Different Elect Store Treasury Bonds on Income Alternative 1) Alternate) Alternative 2) arbell 2. Based on the results disclosed by the differential analysis, should the proposal be accepted? The company is indifferent since the result is the same regardless of which alternative is chosen No Yes 3. If the proposal is accepted, what would be the total estimated income from operations of the store for the 16 years