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 $14,eee 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 Repairs, first year Repairs, second year Repairs, third year $ 5,480 $3,30e $ 5,800 $ 7,880 At the end of three years, the fleet could be sold for one-half of the original purchase price. The company can lease the cars under a three-year lease contract. The lease cost would be $73,eee 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, license the cars, and pay all the taxes. Riteway would be required to make a $16,50e security deposit at the beginning of the lease period, which would be refunded when the cars Lease alternative: Prev 1 of 1 Next 10:30 12/5/ 51% Check my wo At the end of three years, the fleet could be sold for one-half of the origial purchase price. Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $73,eee per year (the first payment due at the end of Year 1). As part of this lease cost, the owner would provide all Riteway would be required to make a $16,5ee 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. servicing and repairs, license the cars, and pay all the taxes. Riteway Ad Agency's required rate of return is 17%. Click here to view Exhibit 13B-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? Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Prev 1of 1EE Next Check my work 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 flows associated with the purchase alternative? (Round your final answer to a whole dollar amount. Enter negative amount with a minus sign.) present value Required 2> Prev 1 of1Next arch 1. What is the net present value of the cash flows associated with the purhase 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 flows associated with the lease alternative? (Round your final answer to a whole dollar amount. Enter negative amount with a minus sign.) present value Prev 1 of 1l Next 1. What is the net present value of the cash 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which alternative should the company accept? flows associated with the purchase alternative? Complete this question by entering your answers in the tabs below Required 1 Required 2Reginired 3 Which alternative should the company accept? OPurchase alternative Lease alternative Required 2 Prev 1of 1 Next 51% ch