$900,000 will be paid at the end of the 5th year.

On December 31, 2019, Waverly Inc purchased a new large machine to clean heavy oil from tar sands from McNally Company. As part of the transaction, Waverly will pay $100,000 up front and also give McNally an interest-bearing note (pays 5% annually) for 900,000 that is due in 5 years. Waverly's CFO found that a similar note would actually pay 9% interest. What is the present value of the note on 12/31/2019