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 $1,080,000 in cash immediately. Pay $481,000 immediately and the remainder in 12 annual installments of $75,000, with the first installment due in one year. Make 12 annual installments of $132,000 with the first payment due immediately. Make one lump-sum payment of $1,750,000 six years from date of purchase. Hard Hat can borrow funds at a(n) 8% interest rate.

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 $1,080,000 in cash immediately. 2. Pay $481,000 immediately and the remainder in 12 annual installments of $75,000, with the first installment due in one year. 3. Make 12 annual installments of $132,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,750,000 six years from date of purchase. Required: Determine the best alternative for Hard Hat, assuming that Hard Hat can borrow funds at a(n) 8% interest rate. Note: Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 )