John needs additional manufacturing space. He found a multi-use facility in a mixed-use zone. The landlord is John's friend and offered him a "sweet-deal" 10-year lease at $120,000 per year with no deposit and no payment until the end of year one. John pays him at the end of every year from thereon until the expiration. John needs to determine the present value of this lease proposal to evaluate the cost of competing options. What is the present value of this lease if the annual interest is 10%?