Required: 1. Prepare a differential analysis at of hily 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) as compared with investing in US Treasury bonds (Ahernative 2). If an amount is res "0". If required, use a meus sign to indicate a loss Differential Analysis Operate Warehouse (Alt. 1) or Invest in Bonds (Alt. 2) Line Item Description Revenues Costs Costs to operate warehouse D Cost of equipment less residual value Profit (Loss) July 1 Operate Warehouse Invest in Bonds (Alternative 1) (Alternative 2) Differential Effects (Alternative 2) 2. Based on the results disclosed by the differential analysis, should the proposal be accepted 3. If the proposal is accepted, what is the total estimated operating income of the warehouse for 16 years? Differential analysis involving opportunity cos On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary equipment to operate a public warhouse Alternatively, the company could use the funds to invest in $151,100 of Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The following data have been assembled Cost of equipment Life of equipment Estimated residual value of equipment Yearly costs to operate the warehouse, excluding deprecation of equipment Yearly expected revenues-years 1-8 Yearly expected revenues-years 9-18 Required: $151,100 10 years $10,100 $55,400 74,400 69,900 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) as compared with investing in US Treasury bonds (Alternative 23 If an amount is e, enter "0" If required, une a minus sign to indicate a loss