Differential Analysis Involving Opportunity Costs On October 1, Midway Distribution Company is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, company could use the funds to invest in $148,000 of 5% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The foll data have been assembled: Cost of store equipment Life of store equipment Estimated residual value of store equipment Yearly costs to operate the store, excluding $148,000 16 years $18,800 depreciation of store equipment Yearly expected revenues-years 1-8 $56,900 $74,000 $70,000 Yearly expected revenues-years 9-16 Required: 1. Prepare a differential analysis as of October 1 to determine whether to Operate Retail Store (Alternative 1) or Invest in Bonds (Alternative 2). If an amou zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Operate Retail Store (Alt. 1) or Invest in Bonds (Alt. 2) October 1 Operate Retail Store Invest in Bonds Differential Effects Revenues Costs: Costs to operate store Cost of equipment less residual value Profit (loss) (Alternative 1) (Alternative 2) (Alternative 2) 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 operations of the store for the 16 years?