$($Mid$-$year discounting$)$ A project is expected to generate the following cash flows: $$500$ in the first year, $$400$ in the second year and $$800$ in the third year. Assume each cash flow is received in the middle of the year, that is on June $30$ of each year. So the first cash flow will be received in $6$ months. The cost of capital is $10\mathrm{.}25\%($expressed as EAR$).$ What is the present value of the cash flows?