Knight Enterprises, Inc., is attempting to sell the business to Bosh Corporation. The company has assets of $1,800,000, liabilities of $1,600,000, and stockholders' equity of $200,000. Both parties agree that the proper rate of return to expect is 12 percent; however, they differ on other assumptions. Knight believes that the business will generate at least $200,000 per year of cash flows for 20 years. Bosh thinks that $160,000 in cash flows per year is more reasonable and that only 10 years in the future should be considered. Determine the range for negotiation by computing the present value of Knight's offer to sell and of Bosh's offer to buy. (Hint: Use Table 2 in Appendix C.)