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Differential Analysis Involving Opportunity Costs On July 1, Midwary Distribution Company is considering leasing a building and buyling the necessary equipment to operate a public

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Differential Analysis Involving Opportunity Costs On July 1, Midwary Distribution Company is considering leasing a building and buyling the necessary equipment to operate a public warehouse Aternatively, the company could use the funts to invest iS148,100 of 6% us. Treasury bonds that mature in 16ers. The s mld be purchased at face value. The following data have been assembled 148,100 16 years $18,200 Cest of store equipment Life of store equipment Estimated residual value of store equipment Yearly costs to operate the warehouse, excluding depreciation of equipment depreciation of store equioment Yearly expected revenues-years 1-8 57,000 5,200 70,200 Yearly expected revenues-years 9-16 1. Prepare a differential analysis as of buly 1 presenting the proposed operati nvesting in u.s. Treasury umbers use a minus sign on of the warehouse for the 16 years (Altermative 1) as compared with bonds (Aternative 2). Ir an amount is zero, enter "0", For those boxes in which you must enter subtracted or negative Operate Warehouse (AR1) or Invest in Bends (AR. 2) 8

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