John Wiggins is contemplating the purchase of a small restaurant. The purchase price listed by the seller is $800,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows:YearsAmount1-6$80,000770,000860,000950,0001040,000If purchased, the restaurant would be held for 10 years and then sold for an estimated $700,000.Required:(a)Determine the present value, assuming that John desires a 10% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Use Table 2 and Table 4) (Round “PV Factor” to 5 decimal places and final answer to the nearest dollar amount. The order of calculations should be from year 1 to year 10. Omit the “$” sign in your response.)