P26-6A Lon Timur is an accou major at a mid state university located Compute annual rate nting western 60 miles from a city. Many of the students attending the university return, cash payback, and net are from the metropolitan area and visit their omes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for (LO 3, 4) students doing weekend travel. He believes that a weekend service could be organized and run profitably from several suburban and downtown shopping mall loca- tions. Lon has gathered the following investment information 1. Five used vans would cost a of $75,000 to purchase and would have a 3-year useful life wi h negligible salvage value. Lon plans to use straight-line depreciation 2. Ten drivers would have to be employed at a total payrol expense of $48,000. 3. Other annual out-of-pocket expenses associated with running the commuter service would include Gasoline $16,000, Maintenance $3,300, Repairs $4,000, Insurance $4,200, and Advertising $2,500