please explain step by step with formulas

tne Rteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then soid 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: Purchose aiternotive: 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 $17.000 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 original purchase price. Leose alternotive: The company can lease the cars under a three-year lease contract. The lease cost would be $69,000 per year (the first payment due at the end of Year 1 ). 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 $14,500 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 le ase contract. Riteway Ad Agency's required rate of return is 19%. Click here to view Exhibit 128-1 and Exhibit 128-2, 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 alternative? 3. Which alternative should the company accept? At the end of three years, the fleet could be sola for one-haif of the original purchase price Lease alternative: The compary can lease the cars under a three-year lease contract. The lease cost would be $69000 per year the first poyntent due at the end of Year t). As part of this lease cost, the owner would provide all servicing and repairs, license the cars, and pay all the taves. Rineway would be required to make a 514.500 security deposit at the beginning of the lease period, which would be refunded when the cars were retuined to the owner at the end of the lease contract. Riteway Ad Agency's required rate of return is 19% Cick here to view Evhibit 128-1 and Exhibit128-2, to determine the appropriate discount factoe(s) using tabies. 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 aliernatne? 3. Which aiternative should the compary accept? Complete thils quection by entering your answers in the tabs thelow. What is the nut preient walue of the cash flows associated with the purchase alternative? (Enter nogativu armount whin in needed. Which can be parchased at a dscounted price of $17,000 each. If this alternative is accepted, the following costs wil be incured on the fleet as a whole. At the end of thee years, the fleet could be sold for one hall of the original purchase price. Lesse alternative: The company can lease the cars under a three-year lease contract. The lease cost would be 569000 peryear ithe first payment due at the end of Year ti. As part of thits lease cost the owner would provide all servicing and repurs, license the cars and pay ali the taxes Rneway wodid be required to make a $14.500 secuity 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 19% Click here 10 view Evtibit 128-1 and Estibit 128-2. to determine the approptiate discount factocis) using tables Required: 1. What is the net present value of the cash flows associated with the purchase alfemantwe? 2. What is the net present value of the casti tlows associated with the iease alteinative? 3. Which aliernative should the combeny accept? Coniplete this question by entering your answers in the rabs below. What is the net prosent value of the cast floms asoodated with the lease altemative? (Enter nequilive amesunt waits a mimis Ugh- found your intermesate catoilacions and final aoswer to the nearest whole dollar armount:-)