Derek Isabel Meredith George Contract Terms Contract Payment Amount Date $550,000 2 years 590,000 3 years 475,000 Today 450,000 1 year Required: 1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount. (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.) Present Value Derek Isabel Meredith George 1-b. Which of the four actors is actually being paid the most? Meredith Derek George Isabel Check m Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today. (2) pay one- half down and the remaining one-half plus 10% in one year , or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $135.000 and therefore has the following payment options: Payment Payment in Total Today Payment Option 1 $135,000 0 $ 135,000 Option 2 67,500 74,250 141,750 Option 3 155, 250 155,250 One Year $ Required: 1-a. Assuming an annual discount rate of 11%, calculate the present value and the total cost. (FV of $1. PV of $1. EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Payment Today Present Value of Payment in One Year Total Present Value (or Total Cost) Option 1 Option 2 Option 3 1-6. Which option's cost has the lowest present value? Option 1 Option 2 Option 3