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 $80,000 and therefore has the following payment options:

Exercise C-5 Calculate the present value of a single amount (LOC-2) 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 considering buying equipment from Lights, Camera, and more for $80,000 and therefore has the following payment options: Option 1 Option 2 Option 3 Payment Today $80,000 40,000 0 Payment in One Year $ 0 44,000 92,000 Total Payment $ 80,000 84,000 92,000 Required: 1-a. Assuming an annual discount rate of 10%, calculate the present value and the total cost. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Payment Today Present Value of Payment in One Year Total Present Value (or Total Cost) Option 1 Option 2 Option 3 1-b. Which option's cost has the lowest present value? Option 1 Option 2 Option 3