Thomas Von Diesel has a 1,800 overdue debt for artifacts at Allison's Art Gallery. He has only 600 in his checking account and doesn't want his parents to know about this debt. Allison tells him that he may settle the account in one of two ways since he can't pay it all now:

1. Pay 600 now and 1,500 when she completes her residency, two years from today.
2. Pay 2,400 one year after completion of residency, three years from today.

Assuming that the cost of money is the only factor in Thomas' decision and that the cost of money to his is 8%, which alternative should he choose? Your answer must be supported with calculations.