Current Attempt in Progress Joseph Moore 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. Joseph, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Joseph has gathered the following investment information. 1. Five used vans would cost a total of $74.751 to purchase and would have a 3-year useful life with negligible salvage value. Joseph plans to use straight-line depreciation. 2. Ten drivers would have to be employed at a total payroll expense of $48,600. 3 Other annual out-of-pocket expenses associated with running the commuter service would include Gasoline $16,000, Maintenance $3,400. Repairs $3,600, Insurance $4.500, and Advertising $2.700. 4. Joseph 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 5. Joseph expects each van to make 10 round trips weekly and carry an average of 6 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. Click here to view PV table TABLE 1 Future Value of 1 (n) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 0 1.00000 1.00000 15% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1 1.04000 1.00000 1.05000 1.00000 1.06000 1.07000 108000 1,09000 1.10000 1. 11000 2 1.12000 1.08160 1.10250 1 15000 1.12360 1.14490 1.16640 1.18810 1 21000 1.23210 3 1.12486 1.25440 1.15763 1.32250 1 19102 1.22504 1.25971 1.29503 1.33100 1.36763 1.40493 4 1 16986 1.52088 1.21551 1.26248 1 31080 1.36019 1.41158 1.46410 1.51807 5 1.21665 1.57352 1.74901 1.27628 1.33823 1,10255 1.46933 1153862 161051 1.68506 1.76234 2.01136 6 1 26532 1.34010 1.41852 1.50073 1.58687 1.67710 1.77156 1.87041 1.97382 7 2.31306 1.31593 1.10710 1.50363 1.60578 1.71382 1.82804 194872 2.07616 2.21068 8 1.36857 2.66002 147746 1.59385 1 71819 185093 1.99256 2.14359 2.30454 2.47596 9 1.42331 3.05902 1 55133 168948 1.83846 1.99900 2.17189 235795 2.55803 2.77308 3.51788 10 1.48024 1.62889 1.79085 1 96715 2.15892 2.36736 2.59374 2.83942 3.10585 1.04556 11 1.53945 171034 1.89830 2.10485 2.33164 2158043 2 85312 3.15176 3.47855 1.65239 12 1.60103 1.79586 2.01220 225219 2.51817 2.81267 3.138.13 3.19845 3.89598 5.35025 13 1.66507 188565 2.13293 2.40985 2.7.1962 3,06581 3.45227 3.88328 4.363.19 6.15279 11 1.73168 1.97993 2.26090 2.57853 2.93719 334173 3.79750 4.31014 188711 707571 15 1.80094 2 07893 2.39656 2.75903 17217 3,64248 4.17725 1.78459 5.17357 813706 16 1.87298 218287 2 54035 2.95216 2.4259 3.97031 159497 5.31089 6.13039 9.35762 17 194790 2.29202 2169277 13882 5170002 132703 505147 5.89509 6.86604 10.76126 IS 2.02582 2.40662 2514 337093 199602 4171712 5155992 6.51355 768092 12.37545 19 210685 252695 3,02560 111570 1191 726334 8.61.276 1123177 20 219112 2.65230 20714 356268 106096 5.60141 672750 8.06231 16 16657 YAD TABLE 2 Future Value of an Annuity of 1 (11) Payments 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000 3 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338 5 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238 6 6.63298 6.80191 6.97532 7.1533 7.33592 7.52334 7.71561 791286 8.11519 8.75374 7 7.89829 8.14201 8.39384 8.6510 8.92280 9.20014 9.48717 9.78327 10.08901 11.06680 8 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11 43589 11.85943 12.29969 13.72682 9 10.58280 11 02656 11.49132 11 9780 12.48756 13.02104 13.579:18 14.16397 14.77566 16.78584 10 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17 54874 20.30372 11 13.48635 14.20679 14.97164 15.7836 16.61549 17 56029 18.53117 19.56143 20.65158 24 34928 12 15.02581 1591713 16.86994 17.8885 18.97713 2014072 21 38.428 22 71319 24 13313 29.00167 13 16.62684 17.71298 18.88214 201406 21.49530 22 95339 24.52271 26.21164 28.02911 34 35192 11 18 29191 19.59863 21 01507 22.5505 24.21492 26.01919 27.97498 30.09492 12 39260 10.50-171 15 20.02359 21 57856 23.22597 25.1290 27.15211 29.36092 11.77248 1410536 37.27972 47 52011 16 21.82453 2365719 25.67253 27 ST 3042 100310 35.94973 39 18995 42.75328 55.71747 17 21.69751 25.8.2017 28 21288 30.8102 1375023 36.97151 10470 11. SOOS 18 367 6507509 18 25.645 3811 10.9056 319990 3745024 41 1014 15.50917 SO 39593 55.74972 75.83636 27.67123 SW00 31 75999 4114636 16.01.16 51 15900 56.949.19 6141008 N821181 110605 S78559 10.9055 15.76196 51 1601 5727500 61202 7205244 10244158 TABLE 3 Present Value of 1 (n) Periods 4% 5% 6% 7% 8% 9% 10% 1 11% 961 54 12% 95228 15% 94140 93458 02593 91743 90909 2 90090 92456 89286 .90703 86957 .89000 .87344 .85734 .84168 .82645 .81162 3 .88900 .86384 .79719 .75614 83962 81630 .79383 77218 .75132 .73119 4 .85480 -71178 82270 .65752 79209 .76290 73503 70843 68301 5 .65873 82193 .63552 78353 57175 .74726 -71299 68058 .64993 .62092 59345 .56743 49718 6 .79031 74622 70496 66634 63017 59627 56447 53464 50663 7 75992 71068 43233 66506 62275 58349 54703 51316 48166 45235 8 73069 375944 67684 62741 58201 54027 50187 46651 43393 40388 9 70259 32690 61461 59190 54393 50025 46043 42410 39092 36061 10 67556 28426 61391 55839 50835 46319 42241 38554 35218 32197 24719 11 64958 58-168 52679 47509 -42888 38753 35049 31728 28748 21494 12 62460 55684 49697 11401 139711 35554 31863 28584 25668 13 18691 60057 153032 46884 41496 36770 32618 28966 25751 22917 14 16253 57748 50507 44230 38782 3-4046 29925 26333 23199 20162 14133 15 55526 48102 41727 36245 31524 27454 23939 20900 18270 12289 16 53391 45811 39365 33873 29189 25187 21763 18829 16312 10687 17 51337 13630 37136 31657 27027 23107 19785 16963 11564 09293 IS 49363 41552 55034 20586 25025 21199 17986 15282 13004 08081 19 47464 39573 23051 27015 23171 19019 16351 13768 11611 07027 20 5639 37689 SINO 25842 21155 17843 14864 12.403 10367 06110 TABLE 4 Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 8% 9% 10% 11% 15% 12% 96154 1 95238 .94340 93458 92593 91743 90909 90090 .89286 86957 1.88609 2. 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.62571 1 71252 1.69005 3 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.28323 2.48685 2.44371 2.40183 4 3.62990 3.54595 3.46511 3.38721 3.31213 285498 3,23972 3.16986 3.10245 3.03735 5 4.32948 1.21236 4.45182 4.10020 3.99271 3.35216 3.88965 3.69590 3.79079 3.60478 5.07569 5.24214 6 4.76654 4.91732 4.62288 4.48592 1.35526 4.11141 4.23054 3.78448 5.58238 7 6.00205 5.38929 5.78637 5. 20637 4.71220 5.03295 4.86842 4.56376 416042 6.73274 6.46321 5.97130 8 6.20979 5.74664 4.96764 5.53482 5.33493 5.14612 4.48732 9 7.43533 6.80169 4.77158 7.10782 6.51523 5.53705 6.24689 5.99525 5.75902 5.32825 8 11090 7.36009 10 7.72173 7.02358 6.71008 6.41766 6.14457 5.65022 5.88923 5.01877 7.88687 6.80519 6.49506 7.19867 7 13896 6 20652 5.23371 11 830641 593770 8.76048 8.38384 7.53608 716073 8.86325 794269 6.81369 5.42062 12 9.38507 6.49236 6.19437 7.90378 7.48690 710336 8.85268 8.35765 6.42355 5.58315 6.74987 13 9.98565 9.39357 7.78615 736669 5.72418 9.29498 8.74547 8.24424 6.62817 6.98187 10. 56312 9.89864 14 8 55948 9.10791 N06069 7.60605 7.19087 6 SION 15 10.37966 9.71225 5.84737 11 11839 9. 14665 8.85137 831256 782371 737916 6.97399 10 10590 5.95424 10.13777 16 1165230 854363 802155 7.54879 6044716 37 9.76 122 711963 12 16567 10.47726 91216 11 27407 x 20141 6 12797 10 05900 7.70162 1265930 9.37180 8.75563 724967 11.63959 IN 10.82760 736578 x 95012 S 16192 78 1929 6. 19823 11 15812 1013560 9.60360 12 0532 13 13394 S1156 796333 6.25933 981815 7.46944 912855 20 12 16221 13 59013 11.16992 10.59:01 4C Cloudy ENG 62. 202 B D (a) Determine the annual (1) net income and (2) net annual cash flows for the commuter service. (Round answers to 0 decimal places, eg. 125.) Net income $ Net annual cash flows $ Save for Later Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above