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 $1,080,000 in cash immediately.

2. Pay $411,000 immediately and the remainder in 10 annual installments of $89,000, with the first installment due in one year.

3. Make 10 annual installments of $151,000 with the first payment due immediately.

4. Make one lump-sum payment of $1,680,000 five years from date of purchase.

How do I calculate best alternative for Harding, assuming that Harding can borrow funds at a 9%interest rate.(Round your final answers to nearest whole dollar amount.)

Option 1:

Option 2:

Option 3:

Option 4:

The best alternative for Harding would be what option?