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 $$1,560,000.$ The seller gives Star Studios the following purchase options: $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)($Use tables, Excel, or a financial calculator. Round your answers to $2$ decimal places.$)$

Pay $$1,560,000$ immediately.

Pay $$560,000$ immediately and then pay $$146,000$ each year over the next $10$ years, with the first payment due in one year.

Make $10$ annual installments of $$230,000,$ with the first payment due in one year.

Make a single payment of $$2,260,000$ at the end of five years.

$1-$a$.$ Determine the present value for each option assuming that the company can borrow funds to finance the purchase at $7\%.$

$1-$b$.$ Which option is the lowest$-$cost alternative for Star Studios?

multiple choice

Option $2$

Option $3$

Option $4$

Option $1$