Your friend has a one-year project that will bring in either $590,000 (0.35 probability) or $1,180,00 (0.65 probability) at the end of the year. The project requires an outlay of $505,000 to start. If the money is raised by borrowing at 5% interest for one year, what would be the initial value of levered equity (according to M&M) given a required return of 13%?