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 fim. The next year's rental charge on the warehouse is $155.000, 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 $1.53 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 $510.000. Finally, the project requires an immediate Investment in working capital of $405,000. 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 $5,30 million, and thereafter sales are forecasted to grow by 5% a year, slightly taster than the inflation rate Manufacturing costs are expected to be 90% of sales, and profits are subject to tax at 21%. The cost of capital is 12% What is the NPV of Pigpen's project? (Enter your answer in thousands, not in millions, rounded to the nearest dollar) Answer is complete but not entirely correct NPV 815 thousand