The Riteway Ad Agency provides cars for its sales staff. In the past, the compony has always purchased its cars from a dealer and then soid 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 oltemattves: Furehase alternative1 the conpany can purehane the carn, an in the past, and sel1 the care after thrne yesta of use. Ten oarn vill be needed, which can be purcbaned at a diccounted price of 520,000 each. If that alternative is accepted, the following conts vili be incurred on the theet an a wholet At the end of three years, the fleet could be sold for one-half of the original purchase price. Lease alternativet the company can lease the cars under a throe-year lease contract. The lease cost would be $55,000 per year (the tirst, paynent doe at the end of Year 1). As part of this lease cost, the owner would provide al1 norvieing abd ropafra. 1 lcense the carn, and pay all the taxes. Ritevay yould be required to nake a 513,000 aecurity deposit at the beginning of the lease period, Whieh would be refunded when the cars vere returned to the ovmer at the end of the lease contract. Riteway Ad Agency's required rate of return is 19%. Click here to view Exhibit 1481 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 altemative? 3. Which alternative should the company accept? Required: 1. What is the net present value of the cash flows associated with the purchase altemative? 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which alternative should the company accept? (x) Answer is complete but not entirely correct. 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 aiternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whote dollar amount.) 1. What is the net present value of the cash flows associated with the purchase altemative? 2. What is the net present value of the cash flows associated with the lease alternative? 3. Which alternative should the company accept? (8) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the net present value of the cash flows associated with the lease alternative? (Enter negative amount with a minus Hign. Round your final answer to the nearest whole doliar amount.)