1. five used vans would cost a total of $75,700 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 $48,010. 3. other annual out-of-pocket expenses associated with running the commuter service would include gasoline $15,990, maintenance $3,300, repairs $4,000, insurance $4,200, and advertising $2,510. 4. lon 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. lon expects each man to make ten round trips weekly and carry an average of six students each trip. the service is expected to operate 30 weeks each year, and each student will be charged $12.05 for a round-trip ticket.

Multiple-choice questions have a special grading rule determined by your instructor. assume that your instructor has decided to grade these questions in the following way: if you submit an incorrect answer to a multiple-choice question with n options, you will lose 1/(nâ’1) of the credit for that question. just like the similar multiple-choice penalty on most standardized tests, this rule is necessary to prevent random guessing. if a multiple-choice question has five answer choices and you submit one wrong answer before getting the question correct, how much credit will you lose for that part of the question? multiple-choice questions have a special grading rule determined by your instructor. assume that your instructor has decided to grade these questions in the following way: if you submit an incorrect answer to a multiple-choice question with options, you will lose of the credit for that question. just like the similar multiple-choice penalty on most standardized tests, this rule is necessary to prevent random guessing. if a multiple-choice question has five answer choices and you submit one wrong answer before getting the question correct, how much credit will you lose for that part of the question? 100% 50% 33% 25% 20%