harding company - Harding Company is in the process of...

Harding Company is in the process of purchasing several large pieces of
equipment from Danning Machine Corporation. Several financing alternatives have
been offered by Danning:
1. Pay $1,210,000 in cash immediately.
2.
Pay $471,000 immediately and the remainder in 10 annual installments of $95,000,
with the first installment due in one year.
3. Make 10 annual installments of $157,000 with the first payment due
immediately.
4. Make one lump-sum payment of $1,740,000 five years from date of purchase.
Required:
a.
Assuming that Harding can borrow funds at an 7% interest rate, determine the
present value. (Use PV of $1, PVA of $1, and PVAD of $1) (Round "PV Factors" to