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On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the the funds to invest in $1,000,000 of 4% U.S. Treasury bonds
On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the the funds to invest in $1,000,000 of 4% U.S. Treasury bonds that mature in 15 years. assembled: Cost of store equipment Life of store equipment Estimated residual value of store equipment $1,000,000 15 years $50,000 Yearly costs to operate the store, excluding depreciation of store equipment $200,000 Yearly expected revenues-years 1-6 $300,000 Yearly expected revenues-years 7-15 $400,000 Required: 1. Prepare a differential analysis as of August 1 presenting the proposed operation of the Treasury bonds (Alternative 2). If an amount is zero, enter "0", Differential Analysis Operate Retail (Alt. 1) or Invest in Bonds (Alt. 2) August 1 Check My Work Operate Retail Invest in Bonds Differenti Effects (Alternative 1) (Alternative 2) (Alternative
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