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. this years rental charge on the warehouse is $100,000 and this number is expected to grow at 4% per year. in addition to using the warehouse, the proposal envisages an investment in plant and equipment of $1.2 million. depreciation is $120,000 per year. pigpen expects to terminate the project after eight years and to resell the plant and equipment then (i.e., in t=8) for $400,000. the project requires an initial (t=0) investment in working capital of $350,000. thereafter, working capital is forecasted to be 10% of sales in each of years 1 through 7. this years sales of hog feed are expected to be $4.2 million and thereafter sales are forecasted to grow by 5% per year. manufacturing costs are expected to be 90% of sales. the corporate tax rate is 35% and the cost of capital is 12%.

what is the NPV of pigpens project? hint: ask yourself if the sale of the plant and equipment in t=8 is taxable.

please provide step-by-step guidance with a timeline! thank you in advance!