Help please

Required: 1. Use the total-cost approach to determine the present value of the cash flows associated with each alternative. (Any cash outows should be indicated by a minus sign. Round to the nearest dollar.) Repairs :-|-|: Net present value _ Lease Alternative: securitydeposit --|-|- Annualleasepavments _-|-|- Refund ordenosit __l_|_ Total cash ows $ 0 $ 0 $ 0 $ 0 Net present value 2. Which alternative should the company accept? 0 Purchase alternative 0 Lease alternative 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 aer three years of use. The company's present eet of cars is three years old and will be sold very shortly. To provide a replacement eet, the company is considering two alternatives: Purchase alternative: 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 $18,000 each. lfthis alternative is accepted, the following costs will be incurred on the eet as a whole: Annual cost of servicing, taxes, and licensing $ 3,400 Repairs, rst year $ 1,300 Repairs, second year $ 3,800 Repairs, third year $ 5,300 At the end of three years, the eet could be sold for one-hail of the original purchase price. Lease aemarive: The company can lease the cars under a threeyear lease contract. The lease cost would be $53,000 per year (the rst payment due at the and onear 1}. As part olthis 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 lease contract. Riteway Ad Agency's required rate of return is 14%. Use Excel or a nancial calculator to solve