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 $1,050,000 in cash immediately.

2. Pay $440,000 immediately and the remainder in 12 annual installments of $80,000, with the first installment due in one year.

3. Make 12 annual installments of $131,000 with the first payment due immediately.

4. Make one lump-sum payment of $1,780,000 six years from date of purchase.

Required: a. Assuming that Harding can borrow funds at an 9% 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.)

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