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 (2) Periods 4% 5% 7% 8% 9% 10% 11% 12% 15% 0 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1 1.04000 1.05000 1.06000 107000 1.08000 1.09000 1. 10000 1.11000 1.1 2000 1. 15000 2 1.08 160 1 10250 1.12360 1.14490 1.16640 1.18810 1.21000 1.23210 1.25440 1.32250 3 112486 1.15763 1 19102 1.22504 1.25971 1.29503 1.33100 1.36763 1.40493 1.52088 4 1.16986 1.21551 1.26248 1.31080 1.36049 1.41158 1.46410 1.51807 1.57352 1 74901 5 1.21665 1.27628 1.33823 1.40255 1.46933 1.53862 1.61051 1.68506 1.76234 2.01136 6 1.26532 1.34010 141852 1.50073 1.58687 1.67710 1.77156 1.87041 1.97382 2.31306 2 1 31593 1.40710 1.50363 1.60578 1.71382 1.82804 1.94872 2.07616 2.21068 2.66002 S 1 36857 1.47746 1 59385 1.71819 1.85093 1.99256 2.14359 230454 2.47596 3.05902 9 1.42331 1 55133 1.68948 1.83846 1.99900 2.17189 2.35795 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 4.04556 1 71034 11 1.53945 189830 2.10485 233164 2.58043 2.85312 3.47855 3.15176 4.65239 2.01220 12 1.60103 2.25219 1 79586 251817 2.81267 3.89598 3.13843 3.49845 5.35025 1.66507 1.88565 2 13293 2.40985 2.71962 3.06581 6.15279 13 3.45227 3.88328 4.36349 2.26090 293719 3.34173 257853 3.79750 707571 1.97993 4.31044 1.73168 14 4.88711 3.17217 4.17725 3.64248 5.47357 2 39656 8.13706 478459 15 1.80094 2.07893 2.75903 3.42594 3.97031 2.95216 4.59497 5 31089 9.35762 2 54035 6.13039 1.87298 16 2.18287 4.32763 5.89509 5.05.147 3.70002 10.76126 6.86604 3.15882 17 2.29202 1.94790 2.69277 5.55992 1.71712 654355 7.65997 12.37545 3.99602 3.37993 18 2.02582 285434 240662 7.26334 14 23177 4.31570 6.11591 861276 5.14166 3.61653 2.10685 302560 19 2.52695 5.60141 6.72750 9.6-1629 06231 16.36654 3.86968 4.66096 20 265330 2.19112 3.20714 TABLE 2 Future Value of an Annuity of 1 Payments 5% 6% 7% 8% 99% 10% 11% 12% 15% 1 1.00XX00 100000 1.00000 1.0000 100000 1.00000 1.00000 1.00000 1.00000 100000 2 204000 205000 2.06000 20700 2.08000 2.09000 2.10000 2.11000 2.12000 215000 3.12160 315250 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 450611 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 752334 7.71561 791286 8.11519 8.75374 7 7.89829 8.14201 8.39384 8.6540 8.92280 9.20044 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 1102656 11.49132 11.9780 12.48756 13.02104 13.57948 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 16.64549 17.56029 18.53117 19.56143 20.65458 24,34928 12 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24 13313 29.00167 13 16.62684 17.71298 18.88214 20.1406 21.49530 2295339 24 52271 26 21164 28.02911 34 35192 14 18.29191 19 59863 21.01 507 22 5505 24.21492 26.01919 27.97498 30.09492 32 39260 10.50471 21.57856 23.27597 20.02359 25.1290 15 27 15211 29 36092 31.77248 34.40536 37.27972 47.58041 42.75323 30.32428 35.94973 21 82453 25.67233 3300340 $5.71747 39.18995 16 23.65749 27 8881 30.8402 33.75023 36.97351 40.51470 6507509 44.500 25.84037 2821288 1367 23.69751 50.39593 75 336 36 55.24972 3745024 41 30134 45 59917 30.90565 33 9990 2013238 18 2564541 51 15000 5693949 43965 3821181 16 01846 41.44626 19 2767123 33.75999 373790 30.53900 205344 57 37500 23 10244358 33 06595 36.78559 30 9955 45 76196 51116012 TABLE 3 Present Value of i Periods 4% 5% 7% 8% 9% 10% 11% 12% 15% 1 96154 95238 94340 93458 92593 91743 .90909 90090 89286 86957 2 92456 90703 89000 873414 85734 84168 82645 81162 79719 75614 3 88900 86384 83962 81630 .79383 .77218 75132 73119 71178 .65752 3 S5480 82270 79209 76290 73503 70843 .68301 65873 .63552 .57175 5 82193 78353 74726 71299 68058 .6.1993 62092 .59345 56743 49718 6 79031 74622 170496 66634 63017 59627 56-147 53464 50663 .43233 7 75992 71068 66506 62275 58349 54703 51316 48166 45235 37594 73069 67684 62741 .58201 54027 50187 46651 43393 40388 32690 70259 6-1461 59190 54393 50025 46043 42410 39092 36061 28426 10 67556 61391 55839 50835 46319 42241 38554 35218 32197 24719 11 64958 58468 52679 47509 42888 38753 35049 31728 28748 21494 62460 12 55684 49697 44401 39711 35554 28584 31863 25668 18691 53032 46884 60057 41496 13 36770 32618 28966 25751 22917 16253 44230 50507 38782 29925 26333 14 34046 57748 23199 20462 14133 41727 31524 27454 23939 36215 20900 12289 15 55526 18270 48102 25187 21763 18829 29189 10687 16312 16 53391 45811 39365 33873 23107 1.4564 19785 09293 31657 16963 37136 27027 13630 17 51337 25025 17986 15282 21199 OSOS! 13004 29586 18 19363 41552 35034 13765 07027 19449 16351 11611 23171 27613 39573 19 17464 33051 10367 12403 14864 06110 17843 25812 21455 311 NO 37689 20 15639 TABLE4 Present Value of an Annuity of 1 Payments 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 96154 95238 94340 93458 92593 91743 90909 90090 89286 .86957 2 1 88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 3 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 4 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 5 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 6 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4 11141 3.78448 7 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 8 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 9 7.43533 7 10782 6.80169 6.51523 6.21689 5.99525 5.75902 5.53705 5.32825 4.77158 10 811090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6,20652 593770 5.23371 12 938507 8.86325 8.38384 794269 753608 7.16073 6.81369 6.49236 6.194437 5.42062 13 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7 10336 6.74987 6.42355 5.58315 14 10. 56312 9.89864 9.29498 8.74517 8.24424 7.78615 736669 6.98187 6.62817 5.724-18 15 11 11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7 19087 6.81086 5.84737 16 11.65230 10.83777 10.10590 9.1665 8.85137 8.31256 782371 7.37916 6.97399 5.95424 17 12 16567 11 27407 10.47726 9.76322 9.12164 8.5136 802155 7.54879 7.11963 604716 18 12.65930 11.68959 10 8 2760 10.05909 9.37189 8.75563 20141 7.70162 7.24967 6.12797 1313394 19 12 08532 1115512 10.33560 9.60360 8.95012 3.36492 78 1929 7.36578 6.19823 12416221 20 13 50033 11.46992 10,50101 9.81815 9.12855 8.51356 7.96333 716944 6.25933 (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