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