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** LOSS On October 1, Matrix Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store Alternatively, the

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** LOSS On October 1, Matrix Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store Alternatively, the company could use the funds to invest in $148,200 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 $148,200 Life of store equipment 16 years Estimated residual value of store equipment $18.900 Yearly costs to operate the store, excluding depreciation of store equipment $55,000 Yearly expected revenues-years 1-8 $75,200 Yearly expected revenues--years 9-16 $69,200 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 amount is zero, enter zero "o". 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 ta Invest Differential M. 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 amount is zero, enter zero "O". For those boves 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 Invest Differential Retail Store in Bonds Effects (Alternative 1) (Alternative ? (Alternative 2) Revenues Costs:

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