1 Problem 5-3 (Algo) Analysis of alternatives (LO5-3, 5-8) Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several flouncing alternatives have been offered by Danning ExotSL PYGES1 EVAGES PVA QEST EVAD of $1 and PVAD.of.5) (Use appropriate factors from the tables provided.) tPay $120,000 in cash immediately 2 Pay $400.000 mmeshately and the remainder in 12 annual instalments of $86,000. with the first installment due in one year 3 Make 12 annual estallments of $130,000 with the first payment due immediately 4 Make one lump-sum payment of $1700.000 six years from date of purchase Required Determine the best aftermative for Harding, assuming that Harding can borrow funds at a 7% interest rate (Round your final answers 10 nearest whole dollar amount) Op Op 1.120.000 2 Problem 5-9 (Algo) Noninterest-bearing note; annuity and lump-sum payment [LO5-3, 5-8] On January 1, 2021 The Baret Company purchased merchandise from a supplier Payment was a noninterest-bearing note requiring The annual payments of $29000 on each December 31 beginning on December 31, 2021, and a lump-sum payment of $190,000 on December 31, 2025 A9% interest rate properly reflects the time value of money in this situation. EV of St. eV of St. EVA of $1. EVA of $1 EVO of S and PVAD at 5) (Use appropriate factors) from the tables provided.) Required Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021 Round your final answer to nearest whole dollar amount) fe te 5 Problems 2 Saved Problem 5-9 (Algo) Noninterest-bearing note; annuity and lump-sum payment [LO5-3,5-8] On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $29,000 on each December 31 beginning on December 31, 2021, and a lump-sum payment of $190,000 on December 31, 2025 A 9% interest rate properly reflects the time value of money in this situation (EVLS1. PV of $1. EVA of 51, PVA of $1. EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021 (Round your final answer to nearest whole dollar amount.) Table values are haned our Cash Flowe Payments Amount Present Value Lump Sum Amount recorded Problems Saved Problem 5-3 (Algo) Analysis of alternatives [LO5-3, 5-8] 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: (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD.or and EVAD $)) (Use appropriate factor(s) from the tables provided.) 1 Pay $1120,000 in cash immediately 2. Pay $100,000 immediately and the remainder in 12 annual installments of $86,000, with the first installment due in one year. 3 Make 12 annual instaliments of $130,000 with the first payment due immediately 4. Make one lump-sum payment of $1,700,000 six years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 7% interest rate (Round your final answers to nearest whole dollar amount.) PV Option t $ 1,120,000 Option 2 Option 3 Option 4 The best allamative for Harding