Mark Harris is an accounting major at a midwesternstate 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. Mark, an entrepreneur at heart, realizes that few good commuting altematives are ayailable for students doing weekend travel. He believes that a weekend comnuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Mark has gathered the foliowing investment intormation. 1. Five used vans would cost a total of $76,137 to purchase and would have a 3 -year useful life with negligible salvage value. Mark plans to use straight-line depreciation. 2. Ten drivers would have to be employed at a total payroll expense of $47,400. 3. Other annual out-of-pocket expenses associated with running the commuter service would include Gasoline $15,800, Maintenance $3,200, Repairs $3,700, Insurance $4,400, and Adver ising $2,800. 4. Mark 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. Mark expects each van to make 10 round trips weekly and carry an average of 6 students each trip. The service is expected to ogerate 30 weeks each year, and each student will be charged $12 for a round trip ticket. 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 0 decinal places, es. 125.) Net income: Net annual cash flows: 5