Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1.	Pay $1,050,000 in cash immediately.
2.	Pay $441,000 immediately and the remainder in 10 annual installments of $92,000, with the first installment due in one year.
3.	Make 10 annual installments of $154,000 with the first payment due immediately.
4.	Make one lump-sum payment of $1,710,000 five years from date of purchase.

Required:

Determine the present value, assuming that Harding can borrow funds at an 10% interest rate.

Determine the best alternative for Harding.