A football team got a draft pick to a two year contract. The expected marginal revenue product of the player in the first year and second year are $1,000,000 and $1,700,000. The contracted wage is $1,300,000 in the first year. The interest rate is .07 each year. The competitive wage in year 2 is expected to be $1,800,000. If the team is indifferent about the player resigning at the end of the contract, how much will they pay him in the second year?

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