Daniel Jackson 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. Daniel, 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. Daniel has gathered the following investment information. 1 Five used vans would cost a total of $74,700 to purchase and would have a 3-year useful life with negligible salvage value Daniel plans to use straight-line depreciation. 2. 3 4. Ten drivers would have to be employed at a total payroll expense of $48,500. Other annual out-of-pocket expenses associated with running the commuter service would include Gasoline $15,700, Maintenance $3,300, Repairs $3,900, Insurance $3,900, and Advertising $2,700. Daniel 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, Click here to view PV table. (a) Determine the annual (1) net income and (2) net annual cash flows for the commuter service. (Round answers to O decimal places eg 125) Net income $ Net annual cash flows $ eTextbook and Media Save for Later Attempts: 0 of 2 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. (c) The parts of this question must be completed in order. This part will be available when you complete the part above