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 altematives Purchase atternative: The conpany can purchase the cars, as in the past, and sell the cars atter three years of use. Ten cars witt be needed, which can be purchased at a discounted price of $16,ee each. If this alternative is accepted, the following costs witl be incurred on the fleet as a whole: At the end of three years, the fleet could be sold for one-half of the original purthase price. Lease atternativet The conpany can lease the cars under a three-year lease contract. The lease cost woutd be 368 , eed per year (the first paynent due at the end of Year 13. 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 nake a. 514,000 security deposit at the beginning of the tease period, which would be refunded when the cars were returned to the ouner at the end of the lease contract