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 fieet of cars is three years old and will be sold very shortly, To provide a replacement fleet, the company is considering two alternatives: Purchase alternativet The company can purchase the cars, as in the past, and sel1 the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $17, eve each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole: At the end of three years, the fieet could be sold for one-haif of the original purchase price. Lease alternotivet The conpany can lease the cars under a three-year lease contract, The lease cost would be $55,900 per year (the first payment due at the end of vear 1). As part of this lease cost, the owner would provide al1 servicing and repales, license the cars, and pay a11 the taxes. Riteway mould be reaulred to make a 510, eeo security deposit at the bedinnting of the lesse period, mhich would be refunded when the cars beginning of the lease perlod, hich wobzd be reranded when Riteway Ad Agency's required rate of return is 18%. 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 fiows 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