Differential Analysis Involving Opportunity Costs On July 1, Midway Distribution Company 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 $151,800 of 5% 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 Estimated residual value of store equipment Yearly costs to operate the warehouse, excluding depreciation of equipment $151,800 16 years $17,800 depreciation of store equipment Yearly expected revenues-years 1-8 Yearly expected revenues-years 9-16 $56,500 74,200 70,700