Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $220,000. The equipment will have an initial cost of $950,000 and have a 6 year life. There is no salvage value for the equipment. If the hurdle rate is 6%, what is the approximate net present value? Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)

$316,667

$950,000

$1,081,806

$131,806