United Pigpen is considering a proposal to manufacture high$-$protein hog feed. The project would require use of an existing

warehouse, which is currently rented out to a neighboring firm. The next year's rental charge on the warehouse is $$135,000,$ and

thereafter, the rent is expected to grow in line with inflation at $4\%$ a year. In addition to using the warehouse, the proposal envisages an

investment in plant and equipment of $$1\mathrm{.}41$ million. This could be depreciated for tax purposes straight$-$line over $10$ years. However,

Pigpen expects to terminate the project at the end of $8$ years and to resell the plant and equipment in year $8$ for $$470,000.$ Finally, the

project requires an immediate investment in working capital of $$385,000.$ Thereafter, working capital is forecasted to be $10\%$ of sales

in each of years $1$ through $7.$ Working capital will be run down to zero in year $8$ when the project shuts down. Year $1$ sales of hog feed

are expected to be $$4\mathrm{.}90$ million, and thereafter, sales are forecasted to grow by $5\%$ a year, slightly faster than the inflation rate.

Manufacturing costs are expected to be $90\%$ of sales, and profits are subject to tax at $21\%.$ The cost of capital is $12\%.$

What is the NPV of Pigpen's project?

Note: Enter your answer in thousands, not in millions, rounded to the nearest dollar.

NPV

thousand