You are considering the purchase of a commercial office property. The property is expected to produce the following net operating income: $654,000 in years 1, 2, and 3; $758,000 in years 4 and 5; and, $977,000 in year 6. You expect to sell the property at the end of year 5 at a cap rate of 7.72%. What is your estimate of the property's value if your cost of capital is 10.68% per year? (This is a Real Estate question and the solution that only uses 10.68% would be a wrong answer.)