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 feet the company is considering two alternatives Purchase alternativer The company can purchase the causn the past, and sell the cars after the years of use. Ten cars will be needed, which can be purchased at a discounted price of $15,000 each. this alternative accepted, the following costs will be incurred on the wat Annual cost of servicing, taxes, and licensing Hepales, first year Repairs. second year $ 3,100 $1.00 $ 3,500 $5,500 At the end of three years, the fleet could be sold for one half of the original purchase poce Leave alternative The company can leave the cars under a three-year lease contract. The lease cost would be $50,000 per year the first payment due at the end of Year 1). As part of this lease cost, the owner would provide all servicing and repairs, licence the cars, and all the tas Ray would be required to make $10,500 Security deposit at the beginning of the law period, which would be refunded when the art were returned to the owner at the end of the lease contact Reway Ad Agency's required rate of return is 1976, Click here to view and ExhIELZ. To determine the appropriate discount factors using tables Required: Riteway Ad Agency's required rate of teturn is 19% Click here to view Exhibit 138.1 and Exhibit13B 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? Book Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required What is the net present value of the cash flows associated with the purchase alternative? (Round your final answer to the nearest whole dollar amount Enter negative amount with a mission) Not pront Required 2 > 1 all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $10,500 security deposit at the beginning of the lease period, which would be refunded when the curs 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 138.1 and Exhibit 13B 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? Retentes Complete this question by entering your answers in the tabs below. Reque 1 Required Required 3 What is the net present value of the cash flows associated with the lease alternative? (Round your foot answer to the nearest whole dollar amount. Entet negative amount with a minussions 1 all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $10,500 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the outer at the end of the lease contract. 10 point Riteway Ad Agency's required rate of return is 19%. Click here to view Exhibit:133_1 and Exhibit 1382. 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? erece Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Which alternative should the company accept? Loose tomativo Purchase alternative