Differential Analysis Involving Opportunity Costs

On August 1, Midway Distribution Company 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 $149,000 of 6% U.S. Treasury bonds that matur in 16 years. The bonds could be purchased at face value. The following data have been assembled: Prepare a differential analysis as of August 1, 2014, presenting the proposed operation of the store for the 16 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). If an amount is zero, enter zero "0