Pear, an individual, plans to start a small business, which will operate as a corporation. In year $0,$ she expects the corporation to generate an ordinary loss of $$1,500,000.$ Subsequently, she expects the dorporation to be profitable, and projects ordinary profit of $$2,250,000$ in year $1,$ and $$3,750,000$ in year $2.$ Pear's personal marginal tax rate on ordinary income is $37$ Assuming a corporate tax rate of $21\%$ and a $10\%$ discount rate, calculate the present value of expected tax costs on the business earnings for the first $3$ years of operations if the business makes an S corporation election. Assume the excess business loss limitation does not apply. Round your discount rate calculations to three decimal places.

$$1,782,000$

$$793,650$

$$1,415,250$

$$1,347,818$