S Roman e sti Duba. Many of the students entending the university are from other countries and live in the accommodation provided by the university, Kumar, an entrepreneur at heart, realues that few food co v er for students were to do weekend travel to the various emiates in the UAL Kur beves the weekend com e to be r ed and run praftably from several location. Kumar has gathered the following investment information D 1.000 phase and would have a year with sleva Kumar plans to use strane depreciation. Therefore, the depreciation expense would be AED 12,000 each 2. Ten would have to be employed a total salary expense of ALD 70.000 Other experience with running the one would include Gasoline ALD Z1000, Maintenance AED 2,800, Repairs AED 3,500, Insurance AED 3200, and Advertising ALD1.500. uma espect each van to make en round trips weekly and carry an average of five students eacher. The service is expected to operate 30 weeks each year. Each student will be charged AED 18 for around trip ticket uma pays on taces for this business Required: a. Calculate the net annual cash flows for each of the years from the project. b. Calculate the payback period of the project c. Calculate the project's net present value. Is the project acceptable if the discount rate is 10% d. Calculate the projects Internal Rate of Return. Is the project acceptable based on the your result? TTTT Paragraph Arial 3 (12pt) %DOQETEST T ar is an accounting majorita private university in Dubai. Many of the Wudents attending the university are from other countries and live in the accommodation provided by the univery Kumar, an entrepreneur at heart reaks that few commuting alternatives are available for students wanting to do weekend travel to see the various emirates in the UAE ar believes that a weekend commung service could be oranged and run profitably from several location. Kumar has gathered the following investment information 1. Six used cars would cost a total of AED $6,000 to purchase and would have a 3 year us e with neg ble sage value Kumar plans tou t -line depreciation. Therefore, the depreciation expense would be ALD 12,000 each 2. Ten drivers would have to be employed at a total salary expense of ALD 70,000 3. Other expenses associated with running the service would include - Gasoline ALD 28.000. Maintenance AED 2,800, Repair AED 1.500 insance AD 1.200, and Advert AED SOO 4. Kumar expects each van to make en round trips weekly and carry an average of five students each trip. The service is expected to operate 30 weeks each year Each sudent will be charged AED 18 for around trip niet 5. Kurna pays 30% taxes for his business