Rel The Riteway 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: Purchase alternative: The company can purchase the cars in the past, and 11 the cars after three years of use. Ton cars will be needed, which can be purchased at a discounted price of $25,000 each. If this alternative is accepted, the following costs will be incurred on the floot as a wholer Annual cout of servicing, taxes and licensing Repairs, first year Repairs, second year Repairs, third year $ 4,100 $ 2,000 $ 4,500 $ 6,500 At the end of three years, the fleet could be sold for one-half of the original purchase price. Lease alternativer The company can leate the care under a three-year Lone contract. The lease coat would be $60,000 per year the first payment due at the end of Year 1). A part of this lease cont. the owner would provide all servicing and repairs, License the cars, and pay all the taxes. Itovay would be required to make a $10,000 Brity 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 to view Exhibit 120.1 and Exhibit 1282. to determine the appropriate discount factors) uning tables, Required: 1. What is the net present value of the cash flows associated with the purchase alternativo? 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which alternative should the company accept? Next