Star Studios is looking to purchase a new building for its upcoming film productions. The company finds a suitable location that has a list price of $1,450,000. The seller gives Star Studios the following purchase options: (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.) eBook 1. Pay $1,450,000 immediately. 2. Pay $450,000 immediately and then pay $135,000 each year over the next 10 years, with the first payment due in one year. 3. Make 10 annual installments of $175,000, with the first payment due in one year. 4. Make a single payment of $2,150,000 at the end of five years. Required: 1-a. Determine the present value for each option assuming that the company can borrow funds to finance the purchase at 7%. Present Value $ 1,450,000.00 Option 2 Option 3 Option 4 1-b. Which option is the lowest-cost alternative for Star Studios? Option 2 Option 1 Option 4 Option 3