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 $1andPVAD of $1)(Use appropriate factor(s) from the tables provided.)

1. Pay $1,120,000 in cash immediately.

2. Pay $400,000 immediately and the remainder in 12 annual installments of $86,000, with the first installment due in one year.

3. Make 12 annual installments of $130,000 with the first payment due immediately.

4. Make one lump-sum payment of $1,700,000 six years from date of purchase.

Required:

Determine the best alternative for Harding, assuming that Harding can borrow funds at a 7%interest rate.(Round your final answers to nearest whole dollar amount.)

?