Connect heation.com/ext/map/index.html?con=contexternal_browser=0&launchUrl=https:2512522 New Tab Chapter 5 Outla... Homework Savad Problem 14-25 (Algo) Net Present Value Analysis of a Lease or Buy Decision The Riteway Ad Agency provides cars for its sales staff in the past, the company has always purcha sold the cars after three years of use. The company's present fleet of cars is three years old and wil replacement fleet, 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 15 accepted, the following costs will be incurred on the fleet whole: Annual cost of servicing, taxes and Teensing Repairs, first year Repairs, second year Repels, third year $5.200 $ 3,100 $ 5,600 $ 7.60 At the end of three years, the fleet could be sold for one-half of the original purchase price Lease alernative The company can lean the che und three year lease contract. The Tease coat would be $1.000 per year the first payment to the end of Year 1 At part of the Last the new prode all services and replacenie the car anu bol the tous Altayla beradred to me, sanisecutor depositate eginning of the lease perted, which could be refused the car