Biotech sold a patent on a new blood analyzer to Pharma. The sales agreement which was signed on January 1, 2009 required Pharma to pay Biotech $1 million immediately. In addition, Pharma is required to pay $700,000 each December 31 for 20 years staring December 31, 2009. Pharma and Biotech judge that a 10 percent is an appropriate interest rate.

What is the amount of the receivable on Biotech's books on January 1, 2009 immediately after receiving the $1 million down payment?