P26-6A Lon Timur is an accounting major at a midwestern state university located Comput approximately 60 miles from a major city. Many of the students attending the university return, are from the metropolitan area and visit their homes regularly on the weekends. Lon, an present entrepreneur at heart, realizes that few good commuting alternatives are available for (LO 3, 4 students doing weekend travel. He believes that a weekend commuting 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 total of $75,000 to purchase and would have a 3-year useful life with negligible salvage value. Lon plans to use straight-line depreciation. 2. Ten drivers would have to be employed at a total payroll expense of $48.000 se 3. Other annual expenses associated with running the commuter would include Gasoline $16,000, Maintenance $3,300, Repairs 4,000, Insurance $4,200, and Advertising $2,500