Bay Properties is considering starting a commercial real estate division. It has prepared the following four-year forecast of free cash flows for this division:

	Year 1	Year 2	Year 3	Year 4
Free cash flow	-114,000	10,000	86,000	200,000

Assume cash flows after year 4 will grow at 3% per year, forever. If the cost of capital for this division is 13%, what is the continuation value in year 4 for cash flows after year 4? (i.e., what is the present value as of year 4 of all the free cash flows that will occur in year 5 and beyond?)

		1,860,000
		2,000,000
		2,060,000
		2,100,000
		2,180,000