Differential Analysis Final Questions August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a reall store. Alternativetly, the company could use the funds to invest S 180,000 of 7% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The flowing 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$56,170 Yearly expected revenues -years 1- Yearly expected revenues--years 9-16 180,000 16 years $14,400 $86,900 $71,200 Required: 1. Prepare a differential analysis as of August 1 presenting the proposed operation of the store for the 16 years (Alternative 1) as compared with investing in U.S Treasury bonds (Aternative 2) Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign if there is no amount or an amount is zero, enter "0 A colon () will automatically appear if required 2 Based on the resuits disclosed by the differential analysis, should the proposal be accepted? It the proposal is accepted, what would be the total estimated income from operations of the store for the 16 yearsi Labels and Amount Descriptions Labels Cash fows from investing activities Previous Next