PR 25-1A Differential analysis involving opportunity costs On October 1, White Way Stores Inc. is considering leasing a building and OB. the necessary equipment to operate a retail store. Alternatively, the compay the funds to invest in $180,000 of 6% U.S Treasury bonds that mature in 16 The ssembled bonds could be purchased at face value. The following data have been assem Cost of store equipment Life of store equipment Estimated residual value of store equipment Yearly costs to operate the store, excluding $180,000 16 years $15,000 depreciation of store equipment Yearly expected revenues-years 1-8 Yearly expected revenues-years 9-16 $58,000 $85,000 $73,000 Instructions 1. Prepare a differential analysis as of October 1 presenting the proposed operation of the store for the 16 years (Alternative 1) as compared with investing in U.S. Treas 2. Based on the results disclosed by the differential analysis, should the proposal be 3. If the proposal is accepted, what would be the total estimated income from operations bonds (Alternative 2). accepted? of the store for the 16 years