The Riteway Ad Agency provides cars for its sales staft. 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 piesent fleet of cars is three years old and will be soid very shortly. To provide a replacement fleet, the company is considering two alternatives: Purshase alternative; The coopany can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of 518,000 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 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 $70,000 per year (the first payment doe at the end of Yean 1). As pert of this lease cost, the over would provide a11 servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $15,000 security deposit at the beginning of the lease perlod, which would be refunded then the cars were returned to the onner at the end of the lease centract. Riteway Ad Agency's required rate of return is 20%. Click here to view Exhiblt 148 : 1 and Exhibil 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 altemative should the company accept? Required: 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? Which aiternative 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 purchase alternative? (Enter negative amount with a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.)