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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:

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 $1,000,000 in cash immediately.
Pay $420,000 immediately and the remainder in 10 annual installments of $80,000, with the first installment due in one year.
Make 10 annual installments of $135,000 with the first payment due immediately.
Make one lump-sum payment of $1,500,000 five years from date of purchase.
Required:
Determine the best alternative for Hard Hat, assuming that Hard Hat can borrow funds at an 8% interest rate.
present value
A process of calculating the present value of the regular cash flows for a specified period and the cost of investment is konw as present value
The present value can be calculated using the following process:

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