Hard Hat Company is in the process of purchasing several large pieces of equipment from Machine Corporation.

Several financing alternatives have been offered by Machine:

Pay $1,050,000 in cash immediately.

Pay $441,000 immediately and the remainder in 10 annual installments of $92,000, with the first installment due in one year.

Make 10 annual installments of $154,000 with the first payment due immediately.

Make one lump-sum payment of $1,710,000 five years from date of purchase.

Required: Determine the best alternative for Hard Hat, assuming that Hard Hat can borrow funds at a(n) 10% interest rate.

Note: Round your final answers to nearest whole dollar amount.

\begin{tabular}{|l|l|} \hline & \multicolumn{1}{|c|}{ PV } \\ \hline Option 1 & \\ \hline Option 2 & \\ \hline Option 3 & \\ \hline Option 4 & \\ \hline The best alternative for Hard Hat & \\ \hline \end{tabular}