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: