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 eompany can purchase the cars, an in the post, and soll the cars after three yoars of use. Ten cars will be needed, which can be purchalled at a discounted price of $19,000 each. If ehis alternative is accepted, the following costs will be incurred on the fleet as a wholer At the end of three years, the fleet could be sold for one-half of the original purchase price. Lease alternativet The company oan lease the cars under a three-yoar leano contract. The lease cost would be $54,000 per year (the tirst 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 taxen. Riteway would be required to make a $12,500 security deposit at the beginning of the lease period, which vould be refunded yhen the cars were returned to the ovner at the end of the lease contract. 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 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