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 char rent is expected to grow in line with inflation at 4% a year. In addition to using the warehouse, the proposal plant and equipment of $1.6 million. This could be depreciated for tax purposes straight-line over 10 years. Howeve to terminate the project at the end of 8 years and to resell the plant and equipment in year 8 for $550,000. Finally, the project requires an immediate investment in working capital of $425,00 Thereafter working capital is forecasted to be % of sales in each of years 1 through 7 Year 1 ales of hog feed are expected to be $5.7 million, andthereafter, sales areforecasted to grow by 5%aye ghtly 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%. ge on the warehouse is $175,000, and thereafter, the envisages an investment in r, Pigpen expects What is the NPV of Pigpen's project? (Enter your answer in dollars not in millions.) NPV Reference links