In a meeting with the project engineers, a 10-year project is being planned for a business expansion. Labor cost and operations

costs to run the project will amount to a total of 600,000 per period. Initial costs to start up the project is estimated at 900,000

for the first three periods. There is also a plan to include 350,000 maintenance cost for the last five periods of the project to

keep the smooth flow of operations and avoid going beyond the target finish date. If money is worth 9% compounded semi-

annually. What is the Present Cost of the 10-year project.