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.

1. Pay 1130000 in cash immediatley

2. Pay 402000 immediatley and the remainder in 12 annual installments of 90000 with the first installement due in one year.

3. Make 12 annual installements of 132000 with the first paymebt due immediatley.

4 Make one lump sum payment pf 1720000 six years from date of purchase.

Required- Determine the best alternative for Hard Hat assuming that Hard Hat can borrow funds at 7% interest rate.

please explain all steps, how we calculate PV for each year

Hard Hat Company is in the process of purchasing several large pieces of equipment from Machine Corporation. Several financing atternatives have been offered by Machine: 1. Pay $130,000 in cash immediately. 2. Pay $402.000 immediately and the remainder in 12 annual installments of $90,000, with the first installment due in one year 3. Make 12 annual instaliments of $132,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,720,000 six years from date of purchase. Required: Defermine the best alternative for Hard Hot, assuming that Hard Hat can borrow funds at a(n) 7% interest rate Note: Round your finel onswers to neorest whole dollor amount. Use tables, Excel, or a financial calculator. (FV of S1. PV of S1, FVA of S1. PVA of S1. EVAD of S1 and PVAD of S1)