Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $26,500 for the car today, 2. Pay $2,300 at the end of each quarter for three years. Required: 1-a. Assuming Denzel uses a discount rate of 8% (or 2% quarterly), calculate the present value. (FV of $1. PV of $1. FVA of S1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Answer is not complete. Present Value $ 26,500.00 Option 1 Option 2 1-b. Which option gives him the lower cost? Option 2 Option 1