Differential Analysis involving Opportunity Costs On July 1, Matrix Stores Inc. is considering leasing a building and buying the necessary equipment to operate a public warehouse Alternatively, the company could use the funds to invest in $149,400 of 6% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The following data have been assembled: Cost of store equipment Life of store equipment $149,400 16 years $17,700 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 $55,700 75,600 69,000 Required: 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. Treasury bonds (Alternative 2). If an amount is zero, enter "o". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Operate Warehouse (Alt. 1) or Invest in Bonds (Alt. 2) July 1 Operate Warehouse (Alternative Invest in Bonds (Alternative Differential Effect on Income (Alternative 2) Yearly expected revenues-years 1-8 Yearly expected revenues--years 9-16 Required: 75,600 69,000 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. Treasury bonds (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Operate Warehouse (Alt. 1) or Invest in Bonds (Alt. 2) July 1 Operate Warehouse (Alternative Invest in Bonds (Alternative Differential Effect on Income (Alternative Revenues Costs: Costs to operate warehouse Cost of equipment less residual value 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