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 $1,060,000 in cash immediately.
2.	Pay $466,000 immediately and the remainder in 10 annual installments of $81,000, with the first installment due in one year.
3.	Make 10 annual installments of $150,000 with the first payment due immediately.
4.	Make one lump-sum payment of $1,790,000 five years from date of purchase.

Required:

Determine the present value, assuming that Harding can borrow funds at an 11% interest rate.

Option 1:

Option 2:

Option 3:

Option 4