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Differential Analysis Involving Opportunity Costs On October 1, Midway Distribution Company is considering leasing a building and purchasing the necessary equipment to operate a retait

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Differential Analysis Involving Opportunity Costs On October 1, Midway Distribution Company is considering leasing a building and purchasing the necessary equipment to operate a retait atorn. Aternatively, the campany couid use then funds to invest in 5151,300 of 6% U.S. Treaswiry bonds that mature in 16 years. The bonds could be purchased at face value. The folloming data have been attembied Required: 1. Prepare a differential analysis as of October 1 to determine whether to Operate Retall store (Atternative H) or Invest in Eonds (A)ternative 2), H an amouns is zerd, enter zera "O". For those boxes in which you must enter subtracted or negative numbers use a minus sign, Fcleck Mp Work income? 2. Based on the results disclosed by the differential analysis, should the proposal be accepted? 3. If the proposal is accepted, what would be the total estimated income from operstions of the store for the 16 years? x

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