(c) Compute the net present value of the commuter service. (Round answer to decimal places, eg. 125. If the net present value is negative, use either a negative sign preceding the number eg - 45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided) Net present value Current Attempt in Progress - Your answer is partially correct. 1. Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He belleves that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Con has gathered the following investment information Five used vans would cost a total of $75,088 to purchase and would have a 3-year useful life with negligible salvage value. Lon plans to use straight-line depreciation. Ten drivers would have to be employed at a total payroll expense of $47.900. Other anrial out-of-pocket expenses associated with running the commuter service would include Gasoline $15,800, Maintenance $3.400 Repairs $4.000. Insurance $4,000, and Advertising $2,500 Lon has visited several financial institutions to discuss funding. The best interest rate he has been able to negotiate is 15% Use this rate for cost of capital nexpects each van to make ten round trips weekly and carry an average of six students each trip. The service is expected to operate 30 weeks each year, and each student will be charged $12 for a round-trip ticket 2 3. 4. 5 Click here to view ptable G) Determine the annual (1 net income and inct annual cash flows for the commuter service. Round answers to decimal places 125) Net income 5371 Netshows $ 30400 Comut the interiod and the rate of retur Round answers to 2 decimales. 10.50) berto 241 MacBook Air F3 888 F da PS tu $ A 3 4 % 5 6 & 7 00 * 8 9 0 E R Y 0