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Differential Analysis Involving Opportunity Costs On July 1, Midway Distribution Company is considering leasing a building and buying the necessary equipment to operate a public warehouse. Alternatively, the compar be purchased at face value. The following data have been assembled: $151,800 16 years $17,500 Cost of store equipment Life of store equipment Estimated residual value of store equipment Yearly costs to operate the warehouse, excluding depreciation of equipment depreciation of store equipment Yearly expected revenues-years 1-8 Yearly expected revenues-years 9-16 Required: $56,300 74,500 69,800 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) as compared with investing in U.S. T or negative numbers use a minus sign. Differential Analysis Operate Warehouse (Alt. 1) or Invest in Bonds (Alt. 2) July 1 Operate Warehouse (Alternative 1) Invest in Bonds (Alternative 2) Differential Effect on Income (Alternative 2) Revenues Costs: Costs to operate warehouse Cost of equipment less residual value 9 Income (Loss) 2. Based on the results disclosed by the differential analysis, should the proposal to operate a retail store be accepted? 3. If the proposal is accepted, what is the total estimated income from operations of the warehouse for the 16 years