Please help find the present value for options $1,2$ and $3.$ Thank you! Gemma Laureta wants to open a new factory in New Jersey. The company can either purchase or lease the factory. There are three options available for

Gemma Laureta:

$($i$)($Click the icon to view the options.$)$

$($Click the icon to view the Future Value of $$1$ table.$)$

$($Click the icon to view the Present Value of $$1$ table.$)$

E$.($Click the icon to view the Future Value of an Ordinary Annuity table.$)$

E$.($Click the icon to view the Present Value of an Ordinary Annuity table.$)$

E $($Click the icon to view the Future Value of an Annuity Due table.$)$

E$.($Click the icon to view the Present Value of an Annuity Due table.$)$

Requirement

Interest is compounded annually. Which option should Gemma Laureta choose given a $15\%$ interest rate?

First, calculate the present value of each option. $($Ignore any depreciation expense for purposes of this problem. Use the present value and future value tables, the

formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts

rounded to five docimal places, X$.$XOXOOX. Round any intermediary currency calculations and your final answer to the nearest cent, $$x.x.)$

Present value

Option $1$

More info

Purchase a factory with a useful life of $25$ years today for $$700,000$ in cash. This factory

has no additional space for rent.

Lease a factory with annual lease payments of $$70,000$ for $25$ years. Payments are made

at the beginning of each year.

Purchase a factory with a useful life of $25$ years today for $$770,000.$ In addition, the

company can rent some additional space for annual rent of $$7,000.$ Assume

Gemma Laureta would receive the rental payments at the end of each year.