Question 1 65 points Saved Kumar is an accounting major at a private university in Dubai Many of the students attending the univeruity are from other countries and live in the accommodation provided by the university, Kumar, an entrepreneur at heart, realizes that few good commuting alternatives are available for students wanting to do weekend travel to see the various emirates in the UAE. Kumar believes that a weekend commuting service could be organized and run profitably from several locations, Kumar has gathered the following investment information. 1. Sox used vans would cost a total of AED 96,000 to purchase and would have a 3-year useful life with negligible salvage value, Kumar plans to use straight line depreciation. Therefore, the depreciation expense would be AED 32,000 each year. 2. Ten drivers would have to be employed at a total salary expense of AED 70,000 3. Other expenses associated with running the service would include Gasoline AED 28.000. Maintenance AED 2,800, Repairs AED 3,500, Insurance AED 3.200, and Advertising AED1,500. 4. Kumar expects each van to make ten round trips weekly and carry an average of five students each trip. The service is expected to operate 30 weeks each year. Each student will be charged AED 18 for around trip ticket 5. Kuma pays 30% taxes for his business Required a Calculate the net annual cash flows for each of the years from the project Calculate the payback period of the project Calculate the project's net present value is the protect d Calculate the projects Internal Rate of Return, is the project acceptable based on the your result? d Calculate the pr o valve is the project acceptable if the discount rate is 10