Cash flow implications of tax losses

WesternGear.com is expected to have operating losses of $350,000 in its first year of business and $250,000 in its second year. However, the company expects to have income before taxes of $400,000 in its third year and $650,000 in its fourth year. The company required rate of return is 14%

Question: 

Assume a tax rate of 35% and that current losses can be used offset taxable income in future years. What is the present value of tax savings related to the operating losses in year 1 and 2?