An obligation can be settled by making a payment of $$$$8$ comma $500$ now and a final payment of $$$$8$ comma $000$ in six years$($Alternative $1).$ Alternatively, the obligation can be settled by payments of $$$$1$ comma $200$ at the end of every six months for seven years$($Alternative $2).$ Interest is $12\%$ compounded semi dash annually. Compute the present value of each alternative and determine the preferred alternative according to the discounted cash flow criterion.

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Part $1$

The present value of Alternative $1$ is $$$

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

Part $2$

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

$$

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

Part $3$

$$Therefore$,$ the best alternative is