Concept explainers
a)
Opportunity Cost: Opportunity cost refers to the forgone revenue which could have been generated through an alternative use of the assets.
Differential Analysis: Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business
To Prepare: The differential analysis of Company WWS as on October 1, for given alternatives.
b)
To Deicide: The proposal to be accepted on the basis of differential analysis.
c)
To Calculate: The total estimated income from the operation of store for 16years.
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