Oasis Telephony has been working on a new hands-free telephone that clips into your ear. The new gadget has now been cleared for manufacture and development. Oasis Telephony anticipates the first annual cash flow from the phone to be 200,000, received 2 years from today. Subsequent annual cash flows will grow at 5 per cent in perpetuity. What is the present value of the phone if the discount rate is 10 per cent?