Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,190,000. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years:

Years Amount

1-6 $ 99,000 (each year)

7 109,000

8 119,000

9 129,000

10 139,000

Bruce expects to sell the restaurant after 10 years for an estimated $1,290,000. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)

Required: 1-a. Calculate the total present value of the net cash flows if Bruce wants to make at least 12% annually on his investment. (Assume all cash flows occur at the end of each year.)