Question 1 (of value: 12.00 points The Riteway Ad Agency provides cars for its sales staff In the past, the company has always purchased it cars from a dealer and then sold the cars after three years of use. The company's present fleet of cars three years old and will be sold very shortly. To provide a replacement fleet, the company is alternatives: 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 $14,000 each. If this alternative is accepted, the follow ng costs will be incurred on the fleet as a whole: Annual cost of servicing. taxes, and licensing Repairs, first year Repairs, second year Repairs, third year S 5.4 00 S 3.300 s 5.800 s 7.800 At the end of three years, the feet could be sold for one-haif of the original purchase price. Lease altermative: The company can lease the cars under s three-year lease contract. The lease cost would be 573,000 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 510.500 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 Riteway Ad Agency's required rate of return is 17%. Cliok here to view Exhibit 13B-1 and Exhibit 138-2 to determine the appropriate discount factor(s) using tables. Required: 1. Use the total-cost approach to determine the present value of the cash flows associated with each alternative. (Any cash outflows should be indicated by a minus sign. Round discount factors) to 3 decimal places.)