Complete this question by entering your answers in the tabs below. What is the net present value of the cash flows associated with the purchase alternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Required: 1. What is the net present value of the cash flows associated with the purchase alternative? 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which atternative should the company accept? Complete this question by entering your answers in the tabs below. What is the net present value of the cash flows associated with the lease alternative? (Enter negative amount with a minus sign, Round your final answer to the nearest whole dollar amount.) The Riteway Ad Agency provides cars for its sales staff, in the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company's present fieet of cars is three years old and will be sold very shortly. To previde a replacement fieet, the company is considering two alternatives: Purchase altemative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $29,000 each, If this alternative is accepted, the following costs will be incurred on the fleet as a whole: At the end of three years, the fleet could be sold for one-half of the oniginal purchase price. Lease atternative: The company can lease the cars under a three-yoar lease contract. The lease cost would be $64,000 per year (the first payment due at the end of Yoar 7). As part of this lease cost, the owner would provide all servicing and repairs, license the cars. and pay all the taxes. Riteway would be required to make a $12,000 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the loase contract. Aiteway Ad Agency's required rote of refurn is 17% Click here to view Exhibit 12B-1 and Exhibit 128:2, to determine the appropriate discount factoris) using tables. (Use the rables to get your discount factors. The linked tables are the same tables as the ones in your course pocket If you cakculate discount factors using Excel or a financial caiculorar, your answer may be dwferent enough due fo roundihg that the system wil mark it wrong) Required: 1. What is the net present value of the cash flows associated with the purchase alternative? 2. What is the net present value of the cash fows assoclated with the lease alternative? 3. Which alternative should the company accept? Complete this question by entering your answers in the tabs below. and pay all the taxes. Riteway would be required to make a $12,000 security deposit at the beginning of the lease period, which be refunded when the cars were returned to the owner at the end of the lease contract. Riteway Ad Agency's required rate of return is 17\%. Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. (Use the tables to your discount factors. The linked tables are the same tables as the ones in your course packet. If you calculate discount factors using Excel or a financial calculator, your answer may be different enough due to rounding that the system will mark it wrong.) Required: 1. What is the net present value of the cash flows associated with the purchase alternative? 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which alternative should the company accept? Complete this question by entering your answers in the tabs below. What is the net present value of the cash flows associated with the purchase alternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) and pay all the taxes. Riteway would be required to make a $12,000 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the lease contract. Riteway Ad Agency's required rate of return is 17%. Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the approptiate discount factor(5) using tables. (Use the tables to get your discount factors. The linked tables are the same tables as the ones in your course packet if you calculate discount factors using Excel or a financial calculator, your answer may be different enough due to rounding that the system wil mark it wrong.) Required: 1. What is the net present value of the cash flows associated with the purchase alternative? 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which alternative should the company accept? Complete this question by entering your answers in the tabs below. What is the net present value of the cash fows associated with the lease alternative? (Enter negative amount with a minus sign. Alound your final answer to the nearest whole dellar amount.)