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fferential analysis involving opportunity costs Instructions Label and Amount Descriptions Differential Analysis Final Questions Instructions On August 1, Rantoul Stores Inc. is considering leasing a

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fferential analysis involving opportunity costs Instructions Label and Amount Descriptions Differential Analysis Final Questions Instructions On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds yvest in 5180,000 of 7%. 2.5. 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 $180,000 16 years 514400 Lite of store equipment Estimated residual value of store equipment Yearly costs to operates the store, exduding depreciation of store equipment Yearly expected revenues yes 1-0 Yearly expected revenues-yours 9-16 $50,170 306,000 571,200 Required: 1. Prepare a direndal analysis as of August 1 prosenting the proposed operation of the store for the 16 years (Alternative) as compared with investing in U.S. Treasury bonds (Alternative 2). Refer to the list of Labels and Amount Descriptions for the exact wording of the answer Diferencial Analysis Diferential Analysis Operator Alterative t) or invested in US Treasury Bonds (Aterte 2) Score: 23771 August Operateral Store Alternative 1) Invested in US Treasury Bands (Alternative) Differential Effect on income (Alternative) 1 Cost of use income Check My Work Prev Ad work suved Saws and a WA 6 5 & 7 6 8 g R. T Y o F G H J

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