Answer all parts of the question

Problem $14-25($Algo$)$ Net Present Value Analysis of a Lease or Buy Decision $[$L$014-2]$

The Riteway Ad Agency provides cars for its sales staff. Its present fleet of cars is three years old and will be sold very shortly. To

provide a replacement fleet, the company is considering two alternatives:

At the end of three years, the fleet could be sold for one$-$half of the original purchase price.

Lease alternative: The company can lease the cars under a three$-$year lease

contract costing $$69,000$ per year $($the first payment due at the

end of Year $1).$ As part of this lease agreement, the owner

would provide all servicing and repairs, license the cars, and

pay the taxes. Riteway would make a $$14,500$ security deposit at

the beginning of the lease period, which would be refunded at

the end of the lease contract.

Riteway Ad Agency's required rate of return is $19\%.$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

What is the purchase alternative's net present value.

What is the lease alternative's net present value.

Which alternative should the company accept?

Complete this question by entering your answers in the tabs below.

What is the purchase alternative's net present value.

Note: Enter negative amount with a minus sign. Round your intermediate calculations and final answer to the nearest whole

dollar amount.