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 $110,000 and therefore has the following payment options:Payment Today Payment inOne Year Total PaymentOption 1 $110,000 $ 0 $110,000Option 2 55,000 60,500 115,500Option 3 0 126,500 126,500Required:1-a. Assuming an annual discount rate of 10%, calculate the present value and the total cost. (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 of payment in one year Total present value (or total cost)Option 1:Option 2:Option 3:1-b. Which option has the lowest total cost in present value terms?Option 1Option 2Option 3