The Wrongway Ad Agency provides cars for its sales start in the past the company has always purchased its cars from a der and then sold the cars atter three years of ine The company's present feet of cars is three years old and will be sold wery shortly to provide a replacement teet the company is considering two alternatives as follows: Parchase Alternative. The company can purchase the cars, as in the past, and sell the cars after three years of e Ten cars will be needed, which can be purchased at a discounted price of $18.800 each. If the alternative is accepted the following costs will be incurred on the feet as a whole Annual cost of Servicing, Les and licensing Repair your Repairs year 2 Repaya $7600 2.220 5,050 8.075 At the end of the years, the feet 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 se cost would be $59.500 per year with the first 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 the taxes. Wrongway would be required to make a $19750 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the lease contract Wrongways required rate of return is 18% Click here to view and Ex02 to determine the appropriate discount factors sing tables 1. Use the total cost approach to determine the present value of the cash flows associated with each alternative. (Negative amounts should be indicated with a minus sign. Round discount factors to 3 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amounts) Present Amount of 18% Value of bem Ya Cash Flows Factor Cash Flows Purchase of fleet Initial payment-cars Annual cost of servicing taxes and licensing Cick to select Repairs - Year Co to select) Repairs - Year 2 co to select) Repairs - Yeat 3 (Cick to select) Resale value of the feet Chotos Present value of cash outflows Lease of cars Initial deposit Lease payments Return of deposit Closed) Cotos Cholo Solo Present value of cash outflows