A new tractor can be acquired by:

1. Outright purchase for cash, at a cost of $64,500.

2. Purchase by an installment contract with a down payment of 20% of the purchase price and four equal annual payments, which is $15,406 per year.

3. A four-year lease plan with annual payments of $12,250 at the beginning of each year followed by a purchase at a buyout price of $30,000 at the end of the fourth year. The opportunity cost of capital is 6%. Which financing alternative would you choose by using net present value method?