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just need help with 1 and 2! thank you so much!! The Riteway Ad Agency provides cars for its sales staff. In the past, the

just need help with 1 and 2! thank you so much!!
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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 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 conpany can lease the cars under a three-year lease contract. The lease cost would be $67,800 per year (the first payment due at the end of year 1). As part of this lease cost, the omer would provide a11 servicing and repairs, license the cars, and pay a11 the taxes. Riteway would be required to make a $13,508 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 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. What is the net present value of the cash flows associated with the purchase altemative? 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.) Riteway Ad Agency's required rate of return is 17%. Click here to view and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. 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 aiternative? 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 lease alternative? (Eniter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.)

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