Exercise C-3 Calculate the present value of a single amount (LOC-2) The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Derek Isabel Meredith George Contract Terms Contract Payment Amount Date $560,000 2 years 600,000 3 years 460,000 Today 460,000 1 year Required: 1-a. Assuming an annual discount rate of 10%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Derek Isabel Present Value $ 971,880.00 1,492,140.00 Meredith George 1-b. Which of the four actors is actually being paid the most? Derek Isabel Meredith George Exercise C-5 Calculate the present value of a single amount (LOC-2) Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one- half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $75,000 and therefore has the following payment options: Option 1 Option 2 Option 3 Payment Today $75,000 37,500 0 Payment in One Year $ 0 41,250 8 6,250 Total Payment $75,000 78,750 86,250 Required: 1-a. Assuming an annual discount rate of 12%, calculate the present value and the total cost. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Payment Today Present Value of Payment in One Year Total Present Value (or Total Cost) $ 75,000.00 Option 1 Option 2 Option 3 1-b. Which option's cost has the lowest present value? Option 1 Option 2 Option 3