Present Value Calculation in Venture Capital Valuation

ABC Venture Partners is evaluating a potential investment in a startup developing a groundbreaking health technology. As part of its valuation process, the firm has projected the startup’s future cash flows for the next five years. The startup's projected cash flows are as follows: Year 1: $500,000; Year 2: $1,200,000; Year 3: $2,500,000; Year 4: $3,800,000; Year 5: $5,000,000. At the end of Year 5, ABC anticipates that the startup will be acquired, and it estimates that the terminal value, applying an exit multiple of 10 times the projected Year 5 cash flow, will be realized.

ABC Venture Partners plans to apply a discount rate of 30% to reflect the risk associated with venture capital investments. What is the present value of the startup based on these projections?