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, 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 $26,666 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole: Annual cost of servicing, taxes, and licensing $ 5,366 Repairs, first year $ 3,266 Repairs, second year $ 5,766 Repairs, third year $ 7,766 At the end of three years, the fleet could be sold for one-half ofthe original purchase price. Lease aLternative: The company can lease the cars under a three-year lease contract. The lease cost would be $72,666 per year (the first payment due at the end of Vear 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 a $16,666 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 16%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount fact0r(s) using tables. Required: 1. What is the net present value of the cash flows associated with the purchase alternative? 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which alternative should the company accept? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the net present value of the cash ows associated with the purchase alternative? (Round your nal answer to the nearest whole dollar amount. Enter negative amount with a minus sign.) ;I Required 1 Required 2 Required 3 What is the net present value of the cash ows associated with the lease alternative? (Round your nal answer to the nearest whole dollar amount. Enter negative amount with a minus sign.) _;I