Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $85,000 or $225,000 with equal probabilities of .5. The alternative risk-free investment in T-bills pays 3% per year. If you require a risk premium of 5%, how much will you be willing to pay for the portfolio? (Round your answer to the nearest whole dollar amount. Omit the "$" sign in your response.)