An analyst gathers the following information about a private company:

• Working capital at fair value: $300,000
• Fixed assets at fair value: $500,000
• Required return on working capital: 4%
• Required return on fixed assets: 10%
• Normalized earnings for the most recent year: $80,000
• Perpetuity growth rate of residual income: 2%
• Discount rate for intangible assets: 10%

Based on the excess earnings method, the company's value is: