An apartment building can be purchased for $1.8 million. It is expected to generate annual NOIs of:Yr.1: $154,000; Yr.2: $158,620; Yr.3: $163,379; and is expected to be sold resulting in a net sale proceed in Yr. 3 of $2.26 million. In addition, it is expected to generate BTCFs of: Yr.1: $59,190; Yr.2: $63,810; Yr.3: $68,568. Assume the project includes a $1.25 million loan having an annual debt service of $94,810 per year, and that the outstanding mortgage balance at the end of the three-year holding period will be $1.20 million. Assume the investor's required return on the project, unleveraged, is 12 percent; and the investor's required return on the project, leveraged, is 18 percent.

Using the appropriate information, what is the VALUE OF THE EQUITY, Ve, if the project is LEVERAGED?