On October 1, White Way 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 $162,000 of 5% 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	$162,000
Life of store equipment	16 years
Estimated residual value of store equipment	$12,800
Yearly costs to operate the store, excluding depreciation of store equipment	$61,795
Yearly expected revenuesyears 18	$83,600
Yearly expected revenuesyears 916	$74,700