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Problem 6-3 Analysis of alternatives [LO6-3, 6-7] Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several

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Problem 6-3 Analysis of alternatives [LO6-3, 6-7] Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: ((EV of $1, PV of $1, FVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,180,000 in cash immediately 2.Pay $481,000 immediately and the remainder in 10 annual installments of $98,000, with the first installment due in one year. 3. Make 10 annual installments of $162,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,770,000 five years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 8% interest rate. (Round your final answers to nearest whole dollar amount.) PV Option 1 Option 2 Option 3 Option 4 The best altenative for Harding Problem 6-3 Analysis of alternatives (LO6-3, 6-7] Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: ((EV of $1, PV of $1, EVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1.Pay $1,180,000 in cash immediately 2.Pay $481,000 immediately and the remainder in 10 annual installments of $98,000, with the first installment due in one year. 3. Make 10 annual installments of $162,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,770,000 five years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 8% interest rate. (Round your final answers to nearest whole dollar amount.) PV Option 1 Option 2 Option 3 Option 4 The best alternative for Harding

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