One of MultiRisk Conglomerates divisions has above average risk and so a divisional weighted average cost of capital of 18%. This division has current sales of $775,000, operating income of $295,000, total net operating capital of $350,000, and a marginal tax rate of 21%. What is the Market Value Added (MVA) for this division if the constant growth FCF model applies and the division expects a constant growth in sales and FCFs of 7%? Enter your answer rounded to two decimal places.

The correct answer is 1,694,213.64; explain step by step how this answer was achieved.