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 $$90,000$ and therefore has the following payment options:

Required:

$1-$a$.$ Assuming an annual discount rate of $11\%,$ calculate the present value and the total cost.

$1-$b$.$ Which option's cost has the lowest present value?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 $$90,000$ and therefore has the following payment options:

Required:

$1-$a$.$ Assuming an annual discount rate of $11\%,$ calculate the present value and the total cost.

$1-$b$.$ Which option's cost has the lowest present value?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Assuming an annual discount rate of $11\%,$ calculate the present value and the total cost.

Note: Use tables, Excel, or a financial calculator. Round your answers to $2$ decimal places. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$

and PVA of $$1)$