The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer an 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 prov replacement fleet, the company is considering two alternatives:

Purchase alternative:Annual cost of servicing, taxes, and licensingRepairs, first yearRepairs, second yearRepairs, third yearAt the end of three years, the fleet could be sold for one$-$half of the original purchase price.Lease alternative:Riteway Ad Agency's required rate of return is $16\%$