Check 2 Bronzeville Products wants an airplane for use by its corporate staff. The airplane that the company wishes to acquire, a Zephyr ll can be either purchased or leased from the manufacturer. The company has made the following evaluation of the two alternatives: Purchase alternative. If the Zephyr ut is purchased, then the costs incurred by the company would be as follows: 3 Boc Purchase cost of the plane $740.000 Annual cost of servicing, licenses, and $ 10,000 taxes Repairs First three years, per year $ 6,000 Fourth year $ 8.000 Fifth year $ 16.000 The plane would be sold after five years. Based on current resale values, the company would be able to set it for about one-half of its original cost at the end of the five-year period Lease alternative. If the Zephyr It is leased, then the company would have to make an Immediate deposit of $51000 to cover any damage during use. The lease would run for five years, at the end of which time the deposit would be refunded. The lease would require an annual rental payment of $155.000 (the first payment is due at the end of Year 1). As part of this lease cost the manufacturer would provide all servicing and repairs license the plane and pay all taxes. At the end of the five-year period, the plane would revert to the manufacturer, as owner Bronzeville Products required rate of return is 15%. Ignore income taxes) Click here to view Exhibit 18-1 and Exhibit 110-2. to determine the appropriate discount factors) using tables Required: is. Use the total cost approach to determine the present value of the cash flows associated with purchase alternative. Use the appropriate table to determine the discount factors) and round final answers to the nearest dollar amount.) 16. Use the total cost approach to determine the present value of the cash rows sociated with one anternative use the appropriate table to determine the discount factors and round nalanwers to the nearest dollar amount) 2. Which tematice should the company accept? Leace alternative