ACCOUNTING Star Studios is looking to purchase a new building for its upcoming film productions. The company finds a suitable location that has a list price of $1,600,000. The seller gives Star Studios the following purchase options: 1. Pay$1,600,000 immediately. 2. Pay $600,000 immediately and then pay$150,000 each year over the next 10 years, with the first payment due in one year. 3. Make 10 annual installments of $250,000, with the first payment due in one year. 4. Make a single payment of$2,300,000 at the end of five years. Determine the lowest-cost alternative for Star Studios, assuming that the company can borrow funds to finance the purchase at 8%.