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 $115,000, and thereaftet, 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 $1.29 million. This could be depreciated for tax purposes straight-fne over 10 years, However, project requires an immediate investment in working capits and to reselt the plant and equipment in year 8 for $430,000. Finaly, the in each of years 1 through 7 . Working capital will be run down to zero in year Thereater, working capital is forecasted to be 10%5 of saies are expected to be $4.50 million, and thereafter, 5 ales are forecasted in year 8 when the project shuts down. Year 1 sales of hog feed. Manufacturing costs are expected to be 90% of sales, and profits are sub grow by 5% a year, slightly faster than the intlation rate. What is the NPV of Pigpen's project? Note: Enter your answer in thousands, not in millions, rounded to the neorest dollar. (8) Answer is complete but not entirely correct