Question: a building and purchasing On August 1, Rantoul Stores Inc. is considering leasi the necessary equipment to operate a retail store. Alternatively, the company could



a building and purchasing On August 1, Rantoul Stores Inc. is considering leasi the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest in $1,000,000 of 4% U.S. 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 Life of store equipment Estimated residual value of store equipment Yearly costs to operate the store, excluding depreciation of store equipment Yearly expected revenues-years 1-6 Yearly expected revenues-years 7-15 $1,000,000 15 years S50,000 $200,000 $300,000 $400,000
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