On July 1 coastal distribution company is considering leasing a building and buying the necessary equipment to operate a public warehouse. Alternatively, the company could use the funds to invest in 151,916 of 6% US treasury bonds that mature in 16 years the bonds could be purchased at face value. The following data has been assembled cost of story equipment one 51,900 life of store equipment 16 years estimated residual value of equipment 18,600 yearly cost to operate the warehouse excluding depreciation of equipment 56,900 yearly expected revenues years one through 875 600 and then yearly expected revenues 9 to 16, 7200.