Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $295,000. The company is an ongoing operation, but it expects competitive pressures to erode its real cash flows at 3.5 percent per year in perpetuity. The appropriate real discount rate for the company is 4 percent. All cash flows are received at year-end. What is the present value of the cash flows from the companys operations? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)