An obligation can be settled by making a payment of $$1,000$ now and a final payment of $$13,000$ in six years $($Alternative $1).$ Alternatively, the obligation can be settled by payments of $$1,300$ at the end of every six months for nine years $($Alternative $2).$ Interest is $11\%$ 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 $ $q,$

$($Round to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.$)$

The present value of Alternative $2$ is $ $q,$

$($Round to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.$)$

Therefore, the best alternative is $(1).$

$(1)$ Alternative $2.$

Alternative $1.$