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 present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives: At the end of three years, the fleet could be sold for one-half of the original purchase price. Lease alternative: The coopany can lease the cars under a three-year lease contract, The lease cost would be $58,000 per year (the first payment due at the end of Year 1). As part of this lease cost, the comer would provide all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $14,500 security deposit at the beginning of the lease peried, which would be refunded when the cars were returned to the ouner at the end of the lease contract. Riteway Ad Agency's required tate of teturn is 1796 . Click here to view and Exhibit 14B:2, to determine the appropriate. discount factor(s) using tabies. 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 altemative? 3. Which alternative should the company accept