Question: Hello, please help me find the numbers for the chart and the last question, thank you! On July 1, Matrix Stores Inc. is considering leasing
Hello, please help me find the numbers for the chart and the last question, thank you!


On July 1, Matrix Stores Inc. is considering leasing a building and buying the necessary equipment to operate a public warehouse. Alternatively, the company could use the funds to invat in $149.600 of 6% US. 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 $149,600 Life of store equipment 16 years Estimated residual value of store equipment $13,400 Yearly costs to operate the warehouse, excluding depreciation of equipment depreciation of store equipment $56,500 Yearly expected revenuesdyears 1-3 101,300 , Yearly expected revenuadyears 9-16 T0300 Required: 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 2). If an amount is zero. enter "0". For those boxa in which you must enter subtracted or negative numbers use a minus sign. Differential Analysls Operate Warehouse (Alt. 1) or Invest In Bonds (Alt. 2) July 1 Operate Warehouse {Alternative 1) Invest in Bonds {Alternative 2) Differential Effect on Income {Alternative 2) revenue em D Costs: Costs to operate warehouse E E J Cost of equipment less residual value E J _ Q Income (Loss) SE B "am a 3. If the proposal is accepted, what is the total estimated income from operations of the warehouse for the 15 1years
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
