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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

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 $140,000 and therefore has the following payment options:

payment today payment in 1 year total payment
option 1 140,000 0 140,000
option 2 70,000 77,000 147,000
option 3 0 161,000 161,000

Assuming an annual discount rate of 10%, calculate the present value and the total cost.

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