Quick-To-Change Company has decided to computerize its accounting system. The company has two alternatives that both entail the use of a computer. It can lease a computer under a three year contract in which the lease payments will be $4,500 each year, payable at the beginning of each year. The lessor will provide all repairs and maintenance under this arrangement. It can purchase the computer outright for $11,600 in cash. In this case, they will incur the following repair and maintenance costs in addition to the initial purchase price: Paid at the end of year one Paid at the end of $500 year two The computer is expected to have only a three-year useful life because of obsolescence and technological advancements. It will have no salvage value and will be depreciated using the double- declining-balance method. Quick-To-Change Company's cost of capital is 12%. Please ignore any income tax effects in this problem. Required: A. Prepare a schedule to show the calculation of the net present value of the out-of-pocket costs for the lease alternative. B. Prepare a schedule to show the calculation of the net present value of the out-of-pocket costs for the purchase alternative. C. Indicate which of the two alternatives would be best, given the data provided. A Lease Alternative: Present value of lease payment #1 Present value of lease payment #2 Present value of lease payment #3 Net present value of out-of-pocket lease payments B Purchase Alternative: Present value of acquisition cost Present value of year one repair and maintenance Present value of year two repair and maintenance Net present value of the out-of-pocket payments for the purchase option