Question
On July 1 campus store Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could
On July 1 campus store 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 1,500,000 of 2% US treasury bonds that mature in 15 years the bonds could be purchased at face value. The following data has been assembled. Cost of story equipment is 1,500,000 life of story clipman is 15 years estimated residue dual value of story equipment is 75,000 yearly costs to operate the store excluding depreciation of story equipment is 320,000 yearly expected revenues that years is one through six years especially revenues years seven through 15 600,000.
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