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

which is currently rented out to a neighboring firm. The next year's rental charge on the warehouse is $$170,000,$ 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{.}62$ 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 $$540,000.$ Finally, the project requires

an immediate investment in working capital of $$420,000.$ Thereafter, working capital is forecasted to be $10\%$ of sales in each of years $1$

through $7.$ Year $1$ sales of hog feed are expected to be $$5\mathrm{.}60$ 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 $35\%.$ 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