Treasury bonds that mature in $15$ years. The bonds could be purchased at face value. The following data have been assembled:

Cost of store equipment

$$1,000,000$

Life of store equipment

Estimated residual value of store equipment

$15$ years

Yearly costs to operate the store, excluding

depreciation of store equipment

$$200,000$

Yearly expected revenues$-$years $1-6$

$$300,000$

Yearly expected revenues$-$years $7-15$

$$400,000$

Required:

enter $"0".$

Differential Analysis

Operate Retail $($Alt$.1)$ or Invest in Bonds $($Alt$.2)$

August $1$

$3.$ If the proposal is accepted, what would be the total estimated operating income of the store for the $15$ years?