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 eplacement fleet, the company is considering two alternatives: Purchase alternative: The company can purchase the cars, as in the past, and sell the cars ofter three years of use. Ten cars will be needed, which can be purchased at a discounted price of $28, eee each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole: At the end of three years, the fleet could be sold for one-half or the original purchase price. Lease alternative: The campany can lease the cars under o three-year lease contract. The lease cost would be $63,000 per year (the first paynent due at the end of Year 1). As part of this lease cost, the onner would provide al1 servicing and repairs, license the cars, and pay all the taxes. Aiteway would be required to moke a $11,500 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the onner at the end of the lease contract. Riteway Ad Agency's required rate of return is 16% Click here to view Exhibit 148-1 and Exhibt 148-2, to determine the appropriate discount factor(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. What is the net present value of the cash flows associated with the purchase alternative? (Enter negative amount with a minus sign. Found your intermediate calculations and final answer to the nearest whole dollar amount.)