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 oid and will be sold very shontly. To provide a replacement fleet, the company is considering two altematives. At the end of three years, the fleet could be sold for one half of the originol purchase price: Cedse alternatives the conpany can lease the cars under a three-year Jease contract. Fhe 1sase cost would be $68,600 per yoar (the first payment due at the thd af Veariz. As part of this lease cost, the olener mould provide Q112 servicing and repolrs, Llcense the cars, and pay all the taxes: 4titendy would ve required to nake a 534,000 secuelfy deposit at the begtinning of the lesse period, which would be refunded when the ears wrre returbed to the dunter at the end of the lease contract. Riteway Ad Agency's required rate of return is 18%. 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