The TechTwo Corporation is about to begin producing and selling its prototype product.Annual cash flows for the next five years are forecasted as:

YearCash Flow

1-$60,000

2 -$20,000

3$100,000

4$500,000

5$800,000

A. Assume annual cash flows are expected to remain at the $800,000 level after Year 5 (i.e., Year 6 and thereafter).If TechTwo investors want a 40 percent rate of return on their investment, calculate the venture's present value.