o ce The Rifteway 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 sold very shortly. To provide a replacement feet the company is considering two alternatives Purchase alternative: The company 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 $19.000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole Annual cert of service, tu, and licensing $3,500 Repairs, first year $ 1,400 Repairs, second $ 3,900 Repairs, third year 15,900 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 $54,000 per year the flest 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 taxes. Riteway would be required to make a $12.500 security deposit at the beginning of the lease period, which would be refunded when the cars were retumed to the owner at the end of the lease contract. Riteway Ad Agency's required rate of return is 18% Chick here to view Exhibit 1284 and Ext 282. to determine the appropriate discount factors) using tables D 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? 3. 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(Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value What is the net present value of the cash flows associated with the lease alternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value