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:

1.	Pay $1,010,000 in cash immediately.
2.	Pay $431,000 immediately and the remainder in 10 annual installments of $91,000, with the first installment due in one year.
3.	Make 10 annual installments of $153,000 with the first payment due immediately.
4.	Make one lump-sum payment of $1,720,000 five years from date of purchase.

Required:

a.	Assuming that Harding can borrow funds at an 11% interest rate, determine the present value. (Use PV of $1, PVA of $1, and PVAD of $1) (Round "PV Factors" to 5 decimal places and final answers to the nearest dollar amount.)

Alternative	PV
1	$
2	$
3	$
4	$

b.

Which is the best alternative for Harding?

	Alternative 1
	Alternative 2
	Alternative 3
	Alternative 4