What is your question? What don't you understand? Where is your solution? Do you just want someone to do your work for you? You would learn nothing that way and it would be a disservice to you. And if you turned in the answer prepared by another person as your own work you would be committing plagiarism which is unethical.

Where did Harding come from?

The cheapest option is 2 at 1,032,549. compare this with your solution and the solution for the other three options.

It is not appropriate of you to assign your homework to others. To get help you should do the work as well as you can and provide your solution so someone can help you by pointing out where you are wrong and by explaining areas where you show weaknesses.

Pahnet Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):







1. Pay $1,120,000 in cash immediately.

2.

Pay $400,000 immediately and the remainder in 12 annual installments of $86,000, 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 $1,700,000 six years from date of purchase.







Determine the present value, assuming that Harding can borrow funds at an 7% interest rate.



Option1:?

Option2:?

Option3:?

Option4:?