Liz was supposed to make a payment of $4,000 in 3 years and another payment for $1,400 in 5 years to Loon Company as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would pay an upfront amount now, and an amount of $800 in 6 years. Assume that money is worth 6.06% compounded quarterly.

a. Calculate the equivalent value of the $4,000 payment and the $1,400 payment today.