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eBook Problem-solving Strategy Differential Analysis Involving opportunity Costs On August 1, Matrix tores Inc. is considering leasing a building and purchasing the necessary equipment to
eBook Problem-solving Strategy Differential Analysis Involving opportunity Costs On August 1, Matrix tores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the compan could use the funds to invest in $150,900 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 Cost of store equipment $150,900 Life of store equipment 16 years $18,700 Estimated residual value of store equipment Yearly costs to operate the store, excluding depreciation of store equipment $55,800 Yearly expected revenues-years 1-8 75,200 Yearly expected revenues-years 9-16 70,000 Required
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