Problem 5-3 (Algo) Analysls of alternatlves [LO53,58] Hard Hat Company is in the process of purchasing several large pieces of equipment from Machine Corporation. Several financing alternatives have been offered by Machine: 1. Pay $1,120,000 in cash immediately. 2. Pay $430,000 immediately and the remainder in 12 annual installments of $81,000, with the first installment due in one year. 3. Make 12 annual installments of $130,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,600,000 five years from date of purchase. Required: Determine the best alternative for Hard Hat, assuming that Hard Hat can borrow funds at a(n) 7% interest rate. Note: Round your final answers to neerest whole doller amount. Use tables, Excel, or a flnanelal caleulator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 )