An obligation can be settled by making a payment of $1,500 now and a final payment of $11,000 in seven years (Alternative 1). Alternatively, the obligation can be settled by payments of $1,000 at the end of every six months for nine years (Alternative 2). Interest is 10% compounded semi-annually. Compute the present value of each alternative and determine the preferred alternative according to the discounted cash flow criterion. The present value of Alternative 1 is $ 7056 (Round to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) The present value of Alternative 2 is s (Round to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)