Exercise $5-9($Static$)$ Noninterest$-$bearing note; single payment $($LO $5-5)$

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 $$150,000$ and therefore has the following payment options:

$$Payment TodayPayment in One YearTotal PaymentOption $1$$ $150,000$$ $0$$ $150,000$Option $275,00082,500157,500$Option $30172,500172,500$

Required:

$1-$a$.$ Assuming an annual discount rate of $11\%,$ calculate the present value and the total cost.

$1-$b$.$ Which option's cost has the lowest present value?