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Differential Analysis Involving Opportunity Costs On October 1, Matrix Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail

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Differential Analysis Involving Opportunity Costs On October 1, Matrix Stores Inc. 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 $151,000 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: 1. Prepare a differential analysis as of October 1 presenting the proposed operation of the store for the 16 years (Aiternative 1 ) as compared with investing in U.S. Treasury bonds (Alternative 2). If an amount is zero, enter zero " 0 ". Differential Analysis Operate Retail Store (Alt. 1) or Invest in Bonds (Alt. 2) nrtahar 1 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 would be the total estimated income from operations of the store for the 16 years

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