Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real cash flows of $202,000. The company is an ongoing operation, but it expects competitive pressures to erode its real cash flows at 3 percent per year in perpetuity. The appropriate real discount rate for the company is 12 percent. All cash flows are received at year-end. What is the present value of the cash flows from the company's operations? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value of cash flows