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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

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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 $152,000 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 $152,000 Life of store equipment 16 years Estimated residual value of store equipment $17,300 Yearly costs to operate the warehouse, excluding depreciation of equipment depreciation of store equipment $55,600 Yearly expected revenues-years 1-8 75,100 Yearly expected reven ues-years 9-16 70,700 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 "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign

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