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Differential analysis involving opportunity costs Labels and Amount Desariptions Differential Analysis Final Questions Instructions On August 1, Rantoul Stores Inc is considering leasing a building
Differential analysis involving opportunity costs Labels and Amount Desariptions Differential Analysis Final Questions Instructions 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 funds to invest in $160,000 of 4% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at tace value. The following data have been assembled $160,000 16 years Cost of store equipment Life of store equipment Estimated residual value of store equipment Yearly costs to operate the store, excluding depreciation of store equipment Yearly expected revenues years 1-8 Yearly expected revenues--years 9-16 $11 200 $65,030 $90,000 $71,300 Required: Differential analysis involving opportunity costs Labels and Amount Desariptions Differential Analysis Final Questions Instructions 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 funds to invest in $160,000 of 4% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at tace value. The following data have been assembled $160,000 16 years Cost of store equipment Life of store equipment Estimated residual value of store equipment Yearly costs to operate the store, excluding depreciation of store equipment Yearly expected revenues years 1-8 Yearly expected revenues--years 9-16 $11 200 $65,030 $90,000 $71,300 Required
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