Differential Rnalyus Involving Oncerrunty Coics On luly 15. Canpus thaves Ine. is corsiderurg leasing a builing and purchasing the necessary equipment to operate a retail store, Ahernatively, the company could use the funds to invest in 51,500,000 of 2% U. 5 . Treasury bends that mature in 15 vears, The bonds codld be purchased at face vilue. The following data fuwn been assembled: becifs (Alternative 2). If an amount is zero, enter "0". If required, use a minun sign to indicate a loss. 1. Prepare a differemial analysis as of July 1 presenting the proposed operation of the store for the 15 years (Alternative 1) as compared with investing in U. 5, Treasury bonds (Altemative 2). If an ameunt is zero, enter "0., If required, use a minus sign to indicate a loos. : Subtuact the nperatiog costs and the cost of the equgment less the residual value from the reveriues frum operating the store. Determine the liond invistment. interest income for is years (grincipal rate x time). Determine the differental offect on inceene of the revences, costs, and profit (loss) tiy subtracting alternative 2 from alternative 1 . Which alternative has the most desarable effect on income? 2. Fased on the fesults disclosed by the differential analyss, should the proposal be accented? 2 from alternative 1. Which alternative has the most desirable effect on 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 operating income of the store for the 15 years? Feodback T Chack My Work Subtract the operating costs and the cost of the equipment less the residual value from the revenues from operating the store. Dete interest income for 15 years (principal rate time). Determine the differential effect on income of the revenues, costs, and profit 2 from alternative 1. Which alternative has the most desirable effect on income? Foedback T Check My Wark Partially correct