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 eet of cars is three years old and will be sold very shortly. To provide a replacement eet, the company is considering two alternatives: Purchase alternative: The company can purchase the cars, as in the past, and sell the cars alter three years of use. Ten cars will be needed, which can be purchased at a discounted price of $15,UEIEI each. lithis alternative is accepted, the following costs will he incuned on the eet as a whole: Annual cost of servicing, taxes, and licensing $ 5,500 Re pairs, rst year $ 3,400 Re pairs, second year $ 5,900 Re pairs, third year $ TBEIEI At the end of three years, the fleet could be sold for onehali of the original purchase price. Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $i'4,l]l] per year (the rst 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 he required to make a $17,000 security deposit at the beginning ofthe 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 18%. Use Excel or a nancial calculator to solve. Required: 1. Use the totalcost approach to determine the present value of the cash flows associated with each alternative. {Any cash outows should be indicated by a minus sign. Round to the nearest dollar.) 0 Answer is not complete. WM ___ Annual servicing costs ___ {5,500} o ___ mama Resale value of cars ___ TILDDCI a Total cash ows ___s sssou Annual lease payments _ (r4,ooo}o (nausea (Homo Total cashows s {1101111} $ {mono} s {mono} s {stone} $ \"some _