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 alternativer The coepany can purchase the cars, as in the past, and sel1 the cars after three yoars of use. Ten cars will be needed, which can be purchased ot a discounted price of $25, bee each. If this alternative is accepted, the following costs will be incurced 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. leare alternotivet The company can lease the cars unden a three-yeac lease contract. The lease cost would be $60,000 per year (the first paysent due at the end of Yeer 1). As part of this lease cost, the ouner would provide al1 servicing and repairs, license the cars, and pay all the taxes. Ritenay would be required to nake a $10, eeo-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 controct. Riteway Ad Agency's required rate of return is 19%. Click here to view and Exhibit 14B-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 assoclated with the lease alternative? 3. Which alternative should the company occept? At the end of three years, the fleet could be sold for one-hatf of the original purchase price. Lease alternativef. The company can lease the cars under a three-year lease contract. The lease cost would be $60,090 per year (the first payment doe at the end of Year 1). As part of this lease cost, the owner would provide a11 servicing and repains, license the cars, and pay all the taxes. Ritevay would be required to make a $10,600 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the ouner at the end of the lease contract. Riteway Ad Agency's required rate of return is 19% Click here to view Exhibit 1AB-1 and Exhibit 1AB=2, to determine the appropriate discount factor(5) 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 assoclated 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 porchase alternative? (Enter negative amount with a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.) 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 $69,090 per year (the first payent 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. Riteuay would be required to make a $10,000 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 19%. Click here to view Exhibit 148 -1 and Exhibit 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 altemative? 3. Which atternative 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 lease alternative? (Enter negative amount with a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.) At the end of three years, the fleet could be sold for one-half of the original purchase price. Lease alternativez The coepany can lease the cars under a three-year lease contract. The lease cost would be $60, 000 per year (the first payeent 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 $10,890 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 19%. Click here to view Exhibit 14B-1 and Exhibit 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. Which alternative should the company accept