Problem $14-25($Algo$)$ Net Present Value Analysis of a Lease or Buy Decision $[$L$014-2]$

The Riteway Ad Agency provides cars for its sales staff. Its 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:

Purchase alternative:

The company can purchase the cars and sell them in three years. Ten cars would be purchased for $$17,000$ each. If this alternative is chosen, the entire fleet will incur the following costs:

$\backslash$table$[[$Annual cost of servicing, taxes, and licensing,$$5,000$