Mudurnu Yem plans to produce high-quality chicken feed. Existing storage that is currently leased to a nearby company is planning to be used in the new project. The storage's rental price for the following year is $195,000, and the rent is predicted to increase at a rate of 4% percent every year afterward. In addition to utilizing the storage, the new project requires $1.77 million investment in plant and equipment. For tax purposes, this may be depreciated straight-line over a ten-year period. Mudurnu Yem, on the other hand, plans to finish the project after eight years and resell the plant and equipment for $590,000 in year eight. Lastly, the project necessitates an immediate investment of $445,000 in working capital. Following that, in each of years 1 through 7, working capital is expected to equal 10% percent of revenues. Sales of high-quality chicken feed are predicted to be $6.10 million in the first year, and sales are expected to grow at a pace of 5% percent each year after that, somewhat faster than inflation.Manufacturing costs are anticipated to be 90% percent of sales, and profits taxed at 21% percent.

Calculate the NPV of Mudurnu Yems project assuming that the cost of capital is 12%. (Enter your answer in thousands, not in millions, rounded to the nearest dollar.)

You can schedule project cash flows across the 8 year horizon as follows in order to find NPV:

(in 1,000s)	0	1	2	3	4	5	6	7	8
Gross asset value
Net asset value
Pre-tax investment cash flow
Tax on gain on sale of asset
Investment, CF net of tax on gain of sale in year 8
Revenue
Direct Cost
Contribution
Rent (opp. Cost)
Depreciation
EBIT
Taxes
Net income
Working Capital ("WC")
(Inc.) Dec. in WC
Add back Depreciation
Net Cash flow
Present Value
Net Present Value