Suppose a firm is considering a labor-saving investment. In year 0, the project requires a $6,300 investment in equipment (all figures are in thousands of dollars). This investment is depreciated using the straight-line method over five years and has a salvage value in year 5 of $1,200. With or without the costreducing investment, all cash flows start in year 1 and end in year 5. The inflation rate is 3.0% in year 2 and declines to 2.0% in year 5. The real growth rate is 16.0% in year 2 and declines to 7.0% in year 5. The tax rate is 38.0% in all years. The real cost of capital is 9.5% in year 1 and declines to 8.9% in year 5.

Without the cost-reducing investment, the firm's existing investments will generate year 1 revenue, labor costs, other cash expenses, and depreciation of

$11,500, $3,200, $4,500, and $1,800, respectively. With the cost-reducing investment, the firm's year 1 labor costs will be $1,300 and revenues and other cash expenses will remain the same. What is the cost-reducing project’s NPV?