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Current Attempt in Progress Sunland Timur is an accounting major at a midwestern state universitylocated 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 wecknds Sunland, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He belicves that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Sunland has gathered the following investment information. 1. Five used vans would cost a total of $75,920 to purchase and would have a 3 year useful life with negligible salvage value. Sunland plans to use straight-line depreciation. 2. Tendrivers would have to be employed at a total payroll expense of $48,700. 3. Other annualout-of pocket expenses associated with running the commuter service would include Gasoline $16,100. Maintenance $3,200, Repairs $4,300, Insurance $4,000, and Advertising $2,500. 4. Sunland 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. Sunland expects each van to make 10 round trips weekly and carry an average of 6 students eich trip. The service is expected to operate 30 weeks each year, and each student will be charged $12 for a round trip ticket. Determine the annual (1) net income and (2) net anntal cash flows for the commuter service. (Round answers to 0 decimal ploces, eg. 125.) Net income Net annual cash fiows (b) Compute (2) the cash payback period and (2) the annual rate of return. (Round answers to 2 decimal places, es. 10,50.) Cash payback period years Annualrate of return (c) Compote the net present value of the commuter service. (Round answer to O decimal ploces, e. 125. 1f the net present value is negothe. use elther a negative slgn precedins the number eg -45 or parentheses eg (45). For calculation purpases, use 5 declinal ploces as displayed in the foctor table provided Net present value $