The Riteway Ad Agency provides cars for its sales staff, In the past, the company has always purchased its cars from a deater 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: Purchose alternotive: The company can purchase the cars, as in the past, and sell the cars after three years of ise. Ten cars will be needed, which can be purchased at a discounted price of $19,000 each. If this alternatlve 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 of the original purchase price. Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $71,000 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, license the cars. and pay all the taxes. Riteway would be required to make a $15,500 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. Riteway Ad Agency's required rate of return is 15%. Click here to view Exhibit 12B1 and to determine the appropriate discount factor(s) using tables. Required: 1. What is the net present value of the cash llows associated with the purchase atternative? 2. What is the net present value of the cash flows associated with the lease altemative? 3. Which alternatlve 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. Round your intermediate calculotions and final answer to the nearest whole dollar amount. ) What is the net present value of the cash flows associated with the lease alternative? (Enter negative amount with a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.) RNIIBTT ABE-1 Proment Value arsi: (1+1)n1 FXImut 12B2