1. Pay $1,060,000 in cash immediately.2. Pay $466,000 immediately and the remainder in 10 annual installments of $81,000, with the firstinstallment due in one year.3. Make 10 annual installments of $150,000 with the first payment due immediately.4. Make one lump-sum payment of $1,790,000 five years from date of purchase.Required:a.Assuming that Harding can borrow funds at an 11% interest rate, determine the present value. (UsePVof $1,PVA of $1, andPVAD of $1)(Round "PV Factors" to 5 decimal places and final answers tothe nearest dollar amount.)
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b.Which is the best alternative for Harding?
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