Please provide detailed explanation and formulas used to calculate the answers and provide answers in the same format as given in the table provided

Required to calculate:

The Wrongway 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 as follows: 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 $23.800 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole: 9:30 $5,200 Annual cost of servicing, taxes, and licensing Repairs, year 1 Repairs, year 2 Repairs, year 3 2,050 5,625 6.800 At the end of three years, the fleet could be sold for one-half of the original purchase price. Lease Alternative. The company can lease the cars under a three-year lease contract The lease cost would be $75,500 per year with 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. Wrongway would be required to make a $23,500 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 lease contract Wrongway's required rate of return is 18% Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables. EXHIBIT 10-1 Present Value of $1 FR P= TI (1 + r)" Perior 45 SSE 696 85 105 125 14% 16% 18% 205 245 265 28% 30% 40% 1 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.362 0.847 0.833 0.820 0.800 0.794 0.751 0.769 0.714 2 0.925 0.907 0.890 0.857 0.526 0.797 0.769 0.743 0.718 0.694 0.672 0.650 0.630 0.610 0.592 0.510 0.859 0.864 0.840 0.794 0.751 0.712 0.675 0.6+1 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.367 + 0.855 0.823 0.792 0.735 0.653 0.636 0.592 0.552 0.516 0.462 0.451 0.423 0.397 0.373 0.350 0.260 0.822 0.621 0.567 0.519 0.476 0.137 0.02 0.370 0.341 0.315 0.291 0.269 0.186 5 6 0.790 0.764 0.747 0.651 0.746 0.705 0.630 0.711 0.665 0.553 0.56+ 0.507 0.456 0.410 0.335 0.303 0.275 0.250 0.227 0.207 0.133 0.370 0.31+ 7 0.760 0.513 0.452 0.400 0.35+ 0.279 0.2449 0.222 0.198 0.178 0.159 0.095 S 0.731 0.073 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.204 0.179 0.157 0.139 0.123 0.06S 0.703 0.645 0.592 0.500 0.424 0.361 0.305 0.263 0.225 0.194 0.125 0.108 0.094 0.045 0 10 1 0.676 0.614 0.555 0.463 0.356 0.322 0.270 0.227 0.191 0.162 0.167 0.144 0.137 0.116 0.112 0.094 0.099 0.083 0.073 0.035 0.650 0.555 0.527 0.429 0.350 0.257 0.237 0.195 0.162 0.135 0.079 0.066 0.056 0.025 13 0.625 0.553 0.497 0.397 0.319 0.257 0.203 0.137 0.112 0.092 0.076 0.062 0.052 0.043 0.015 0.168 0.145 13 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.116 0.093 0.075 0.061 0.050 0.040 0.033 0.013 14 0.573 0.505 0.125 0.099 0.078 0.062 0.049 0.039 0.032 0.025 0.009 15 0.555 0.451 0.105 0.084 0.065 0.051 0.040 0.031 0.025 0.020 0.006 0.142 0.340 0.263 0.205 0.160 0.417 0.315 0.239 0.163 0.140 0.394 0.292 0.215 0.163 0.123 0.371 0.270 0.198 0.176 0.10S 16 0.534 0.458 0.093 0.071 0.054 0.042 0.032 0.025 0.019 0.015 0.005 17 0.513 0.436 0.000 0.060 0.045 0.034 0.026 0.020 0.015 0.012 0.003 IS 0.494 0.416 0.350 0.250 0.180 0.130 0.095 0.069 0.051 0.035 0.02S 0.021 0.016 0.012 0.009 0.002 19 0.75 0.396 0.331 0.232 0.164 0.110 0.083 0.060 0.043 0.031 0.023 0.017 0.012 0.009 0.007 0.002 20 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.019 0.014 0.010 0.007 0.005 0.001 21 0.-39 0.359 0.294 0.199 0.135 0.093 0.06+ 0.044 0.031 0.022 0.015 0.011 0.005 0.000 0.004 0.001 22 0.722 0.342 0.278 0.16+ 0.123 0.083 0.056 0.038 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.001 23 0.400 0.326 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.007 0.005 0.003 0.002 24 0.390 0.310 0.247 0.158 0.102 0.000 0.043 0.028 0.019 0.013 0.005 0.000 0.004 0.003 0.002 25 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.007 0.003 0.003 0.002 0.001 0.000 0.004 0.002 0.002 0.001 27 0.005 0.003 0.002 0.001 0.001 0.361 0.251 0.220 0.135 0.347 0.20 0.207 0.125 0.333 0.255 0.196 0.116 0.321 0.243 0.185 0.107 0.004 0.002 0.002 0.001 0.001 $ 8 8 8 8 0.084 0.053 0.033 0.021 0.014 0.009 0.076 0.047 0.029 0.018 0.01 0.007 0.069 0.042 0.026 0.016 0.010 0.006 0.063 0.037 0.022 0.014 0.005 0.005 0.057 0.033 0.020 0.012 0.007 0.004 0.022 0.011 0.005 0.003 0.001 0.001 0.003 0.002 0.001 0.001 0.308 0.231 0.174 0.099 0.003 0.002 0.001 0.001 0.208 0.142 0.097 0.046 EXHIBIT 10-2 Present Value of an Annuity of $1 1 Po 12 + Period 5% 6% 8% 10% 22% 24% 26% 28% 30% 40%. 1 0.962 0.952 0.943 0.926 0.909 0.820 0.506 0.794 0.751 0.769 0.714 2 1.556 1.359 1.533 1.753 1.736 1.492 1.457 1.424 1.392 1.361 1.224 3 2.775 2.723 2.673 2.577 2.487 12% 14% 16% 18% 20% 0.893 0.877 0.362 0.847 0.333 1.690 1.647 1.605 1.566 1.528 2.402 2.322 2.246 2.174 2.106 3.037 2.914 2.795 2.690 2.589 3.605 3.433 3.274 3.127 2.991 4.111 3.889 3.655 3.498 3.326 2.042 1.981 1.559 1.923 1.565 1.816 2.320 2241 2.166 4 3.630 3.546 3.465 3.312 3.170 2.494 2.404 1.579 5 4.452 4.330 7.212 3.993 3.791 2.86+ 2.745 2.635 2.532 2.436 2.035 6 5.242 5.076 4.917 4.623 4.355 3.167 3.020 2.535 2.759 2.643 2.169 7 6.002 5.786 5.582 5.206 4.56S 7.564 4.255 4039 3.812 3.605 3.416 3.242 3.053 2.937 2.502 2.263 8 6.733 6.463 6.210 5.747 5.335 4.965 4.639 4.344 4.078 3.937 3.619 3.421 3.241 3.076 2.925 2.331 9 7.435 7.10S 6.802 6.247 5.759 5.328 4.946 4,607 4.303 4.031 3.736 3.566 3.366 3.154 3.019 2.379 10 S.111 7.722 7.360 6.710 6.145 5.650 4.494 4.192 3.923 3.662 3.465 3.269 3.092 2.414 I! 3.760 S.306 7.587 7.139 6.495 5.938 5.216 +.533 5.453 5.029 5.660 5.197 4.656 4.327 4.035 3.776 3.544 3.335 3.147 2.435 12 9.385 S.363 S.354 7.536 6.S14 6.194 4.793 4.439 4.127 3.851 3.606 3.387 3.190 2.456 13 9.986 9.394 S.553 7.904 7.103 6.424 5.5+2 5.342 4.910 4.533 4.203 3.912 3.656 3.427 3.223 2.469 14 10.563 9.999 9.295 8.244 7.367 6.628 6.002 5.463 5.00S 4.611 4.265 3.962 3.695 3.459 3.219 2.477 15 ILIIS 10.350 9.712 8.559 7.606 6.311 6.142 5.575 5.092 4.675 4.315 4.001 3.726 3.453 3.268 2.454 16 11.652 10.838 10.106 8.851 7.S24 6.974 6.265 5.669 5.162 4.730 4.357 4.033 3.751 3.503 3.283 2.459 17 12.166 11 274 10.477 9.122 3.022 7.120 6.373 5.749 5.222 4.775 4.391 4.059 3.771 3.515 3.295 2.492 IS 12.659 11.690 10.528 9.372 3.201 7.250 6.467 5.815 5.273 4.812 4.419 4.080 3.736 3.529 3.304 2.494 19 13.134 12.085 11.155 9.604 S.365 7.366 6.550 5.877 5.316 4.344 4.442 4.097 3.799 3.539 3.311 2.496 20 13.590 12.462 11.470 9.SIS 8.514 7.469 6.623 5.929 5.353 4.370 4.460 4.110 3.30S 3.546 3.316 2.497 21 14.029 12.821 11.764 10.017 22 14.451 13.163 12.042 10.201 3.320 2.495 3.323 2.495 3.325 2.499 3.327 2.499 23 14.557 13.459 12.303 10.371 24 15.247 13.799 12.550 10.529 4.391 4.476 4.121 3.816 3.551 4.909 4.455 4.130 3.522 3.556 4.925 7.499 +137 3.527 3.559 4.937 4.507 4.143 3.531 3.562 4.945 4.514 4.147 3.534 3.567 4.956 4.520 4.151 3.537 3.566 4.964 +.525 4.154 3.539 3.567 4.970 4.525 4.157 3.840 3.565 25 15.622 14.094 12.783 10.675 3.329 5.619 7.562 6.687 5.973 5.354 5.772 7.645 6.743 6.011 5410 S.SS3 7.713 6.792 6.044 5.432 8.955 7.754 6.535 6.073 5.451 9.077 7.543 6.873 6.097 5.467 9.161 7.396 6.906 6.115 5.450 9.237 7.943 6.935 6.136 5.492 9.307 7.984 6.961 6.152 5.502 9.370 5.022 6.953 6.166 5.510 9.427 5.055 7.003 6.177 5.517 2.499 26 15.983 14.375 13.003 10.810 3.330 2.500 27 16.330 14.643 13.211 10.935 3.331 2.500 28 16.663 14.898 13.406 11.051 3.331 2.500 29 16.934 15.141 13.591 11.158 4.975 7.531 4.159 3.841 3.569 3.332 2.500 30 17.292 15.373 13.765 11.258 4.979 4.534 7.160 3.842 3.569 3.332 2.500 40 19.793 17.159 15.046 11.925 9.779 5.244 7.105 6.234 5.545 4.997 4.544 4.166 3.846 3.571 3.333 2.500 factor(s) using tables. 1. Use the total cost approach to determine the present value of the cash flows associated with each alternative. (Negative amounts should be indicated with a minus sign. Round discount factor(s) to 3 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amounts.) 6:57 Present Amount of 18% Value of Item Year(s) Cash Flows Factor Cash Flows Purchase of fleet: Initial payment-cars (Click to select) $/ Annual cost of servicing. (Click to select) taxes and licensing Repairs - Year 1 (Click to select) Repairs - Year 2 (Click to select) Repairs - Year 3 (Click to select) Resale value of the fleet (Click to select) v Present value of cash outflows Lease of cars: Initial deposit Lease payments Return of deposit (Click to select) $ (Click to select) (Click to select) II III Present value of cash outflows $ 2. Which alternative should the company accept based on the calculations in part (1)? Purchase of fleet Lease of cars