A project has an initial cost of $1,000,000and is expected to last for 2 years. In year 1, depreciation charge will be $100,000 and earnings are expected to be $147,940. In year 2, depreciation will be $100,000 and earnings are expected to be $189,446. Assume the required return is 14%. What is the value of this project?(Please ignore the$sign when submitting youransweras the system will not read it).

Correct Answer:

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