United Pigpen is considering a proposal to manufacture high protein hog feed. The project would make use of an existing warehouse that you own, which is currently rented out to a neighboring firm. Next year's rental charge on the warehouse is $100,000 and thereafter the rent is expected to grow at 4% a year. In addition to using the warehouse, the proposal envisages an immediate investment in plant and equipment of $1,200,000. This will be depreciated for tax purposes straight line to zero 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 $400,000. Finally, the project requires an initial investment in working capital of $350,000. Thereafter, working capital is forecast to be 10% of sales in each of years 1-7. Year 1 sales of hog feed are expected to be $4,200,000 and thereafter sales are forecast to grow by 5% a year. 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?