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 soid very shortly. To provide a replacement fleet, the company is considering two alternatives: Purchase atternative: The conpany can purchase the cars, as in the past, and selt the cars after three years of use. Ten cars uill be needed, which can be purchased at a discounted price of $31, each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole: At the end of three yeTirs, the fleet could be sold for one-half of the original purchase price. Lease alternative: The cospany can lease the cars under a three-year lease contract. The lease cost would be $66,000 per year (the first paynent due at the end of Year 1). As part of this lease cost, the ouner would provide att servicing and repairs, license the cars, and pay all the taxes, Riteway would be required to make a $13,600 security deposit at the beginaing of the lease period, which woutd 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 16%. Click here to view Exhiblt 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 assoclated 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