Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one-half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $85,000 and therefore has the following payment options:

	Payment Today	Payment in One Year	Total Payment
Option 1	$85,000	$ 0	$85,000
Option 2	42,500	46,750	89,250
Option 3	0	97,750	97,750

Required:
1-a.	Assuming an annual discount rate of 11%, calculate the present value and the total cost for option 1, 2,3