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Diferencial Analysis involving Opportunity costs On July 1, Matra Stores Inc. is considering leasing building and buying the necessary equipment to operate a public warehouse

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Diferencial Analysis involving Opportunity costs On July 1, Matra Stores Inc. is considering leasing building and buying the necessary equipment to operate a public warehouse Alternatively, the company could use the funds to invest in $151,700 of US Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The following data have been assembledi Cost oftare equipment $151.700 Life of store equipment 16 years Estimated residual value of strategiment $17,000 Yearly costs to operate the warehouse, odluding depreciation of equipment $56,000 Yearly expected revenues-vears 1-3 75,500 Yearly expected revenues-vars 9-16 71.000 Required: 1. Prepare a differential analysis of presenting the proposed operation of the warehouse for the 16 Wars Alternative 1) is compared with investing in U.S. Treasury toods (Alternative 2). an mountir, enter", I reared, use a mission to indicate a los Differential Analysis Operate Warehouse (All) or invest in bonds (Alt.) July Operate Invest in Differential Warehouse Bonds Effects (Alternative 1) (Alternative 2) (Alternative 2) 71.000 Yearly exced revenues Years 1 Required: 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 15 as compared with investing in u.s. Treasury bandu (Alicnative 2) If an amount is zero, enter "o". If required, use a mission to indicate a los Differential Analysis Operate Warehouse (Alt. 1) or Invest in Bonds (Alt. 2) July 1 Operate Invest in Differential Warehouse Bonds Effects (Alternative 1) (Alternative 2) (Alternative) Revences Costs Cost to operate warehouse Cost of equipment les residual Profit 2 Dated on the cults dindoned by the different should te probe accepted NO 3. If the root accepted, what is the total stimated operating income of the watches for 10 years

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