] pring 2024 Manage o vy e e Ch. 25: Homework Y SR Differential Analysis Involving Opportunity Costs On October 1, Midway Distribution Company 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 $149,500 of 6% 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 i $149,500 Life of store equipment 16 years Estimated residual value of store equipment $18,100 Yearly costs to operate the store, excluding depreciation of store equipment $56,700 Yearly expected revenuesyears 1-8 $75,600 Yearly expected revenuesyears 9-16 $69,300 Required: 1. Prepare a differential analysis as of October 1 to determine whether w Operate Retail Store (Alternative 1) or Invest in Bonds (Alternative 2). If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Operate Retail Store (Alt. 1) or Invest in Bonds (Alt. 2) October 1 Operate Invest Differential Retail Store in Bonds Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues QD mD mD Costs: Costs to operate store D D D Cost of equipment less residual value D D D Profit (loss) AU D $ i Check My Work A Previous Next V