Helga is considering the purchase of a small restaurant. The purchase price listed by the seller is $$940,000.$ Helga has used past financial information to estimate that the net cash flows $($cash inflows less cash outflows$)$ generated by the restaurant would be as follows:

Years Amount

$1-6$ $ $94,000$

$784,000$

$874,000$

$964,000$

$1054,000$

If purchased, the restaurant would be held for $10$ years and then sold for an estimated $$840,000.$

Required:

Determine the present value, assuming that Helga desires a $10\%$ rate of return on this investment. $($Assume that all cash flows occur at the end of the year.$)$