Weihong Corporation is about to emerge from a Chapter 11 reorganization. Assets of the emerging entity have a total book value of $3,000,000. Of these, assets with a book value of $600,000 are not needed to operate the emerging entity and will be sold for an expected price of $500,000. The remaining assets will be used in operations. Operations are expected to generate an annual net cash flow of $425,000. This amount is projected for the next five years; a discount rate of 8 percent is deemed appropriate.

Required

Calculate Weihong Corporations reorganization value. For convenience, assume the operating cash flows take place at the end of each year.

Round your answer to the nearest whole number.