Your company has purchased a new piece of equipment for $1,000,000 and the equipment has a useful life of 5 years and uses the straight-line method of depreciation. It is estimated that labor costs and maintenance costs will be reduced by $500,000 per year for the next 5 years. Your company has a hurdle rate of 10%.

Calculate the Net Present Value (NPV) for the equipment purchase.

A) $525,000

B) $735,000

C) $1,000,000

D) $895,000