If All-Star was to purchase the 50-seat bus and use it solely for shuttling between the office and BC Place, it would have the following expected costs: Figure 2: Bus costs Cost of bus, current $300,000 Driver salary, weekly $600 Repairs and Maintenance, weekly $200 Cleaning costs, weekly $300 Fuel costs, weekly $400 Insurance costs, annual $2,500 Expected sale price, 4 years later $200,000 Alternatively, renting the bus would cost $800 per afternoon (all expenses included). To purchase the bus, it is unclear if All-Star would pay cash or borrow the money from the bank at a 5% rate (the business has already negotiated a sizeable line-of-credit to borrow at this rate for any of its business ventures). Don wants a pros and cons analysis of buying or renting the bus, as well as the benefits and drawbacks of using the companys own cash to purchase an asset, or borrowing to do so. He also wants an idea of how the purchase of a big asset such as a bus would be accounted for