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On August 1, Pantoul Stores lnc. is considering leasing a building and purchasing the necessary equipment to cperate a retal store. Allernatively, the compary could

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On August 1, Pantoul Stores lnc. is considering leasing a building and purchasing the necessary equipment to cperate a retal store. Allernatively, the compary could use the funds to nivest in $192,000 of 4% U. 5 . Treasury bonds that mature in 18 years. The bonds could be purchased at face value. The following data have been assembled: Required: 1. Prepare a differential analysis as of August 1 presenting the proposed oppration of the store for the if years (Ahemative 1) as compared with investing in US. Treasury bonds (Aliemative 2). Rofer to the hists of Labels and Amount Descripions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negabve numbers use a minus sign. if there is no amount or an amount is zero, enter " : A colon ( wil automancaly appear if required 2. Based on the results disclosed by the diflorendial analysis, should the proposal be accepted? 3. If the proposal is accepted, what would be the botal estimated income from operations of the store for the 16 years? 1. Prepare a differential analysis as of August 1 presenting the proposed operation of the store for the 16 years (Altemative 1) as compared with investing in U.S. Treasury bonds (Ahemative 2). Reler to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for lext entries, For those boxes in which you must enter subtracted or negative numbers use a minus sign, If there is no amount or an amount is zevo, enter ro: A colon (1) will automutically appear if recuired 2. Based on the results disclosed by the differential analysis, should the proposal be accepted? No The company is indifferent since the result is the same regardless of which alternative is chosen. Yes 3. If the proposal is accepted, what would be the total estimated income from operations of the store for the 16 years

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