Dandy wishes to make a takeover bid for the shares of an unquoted company, Herbage. The earnings of Herbage over the last five years have been as follows:

20X0 $220,000

20X1 $280,000

20X2 $270,000

20X3 $290,000

20X4 $350,000

The average P/E ratio of quoted companies in the industry in which Herbage operates is 20. Quoted companies that are similar in many respects to Herbage are:

• LP which has a P/E ratio of 40 and very good sustained growth prospects

• TD which has a P/E ratio of 12 and limited growth prospects

As Herbage is unquoted, Dandy will use 50% of whichever P/E ratio is selected to value Herbage.

Based on the above figures, what is the maximum amount that Dandy should offer? (in number format)