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Diffeneatial Analysis involving Opportunity Costs On July 1. Midway Distribution Company is considering leasing a building and buying the necessary equipment to operate a public

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Diffeneatial 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. Aternatively. the company could use the funds to invest in $150,400 of 6% U.S. Treasury thonds that mature in 16 years. The bonds could be purchased at face value. The following data have been assembled: - Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) as compared with vesting in U.S. Treasury bonds (Alternative 2). If an amount is zero, enter " 0, For those boxes in which you must enter subtracted or negative number: se a minus sign. Differential Analysis 1. Prepare a oifferential analysis as of Joly 1 presenting the proposed operation of the warehouse fer the 16 years (Alternative 1 ) os compared with investing in. U.S. Theagury bonds (Alternative 2). If an amount is zero, enter rot, For those boxes in which you must entier subtracted or negative numbert wive a minus sian. 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? x

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