United Pigpen (UP) 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 charge on the warehouse is $100,000, and thereafter the rent is expected to grow in plant and equipment of $1.2 million. This could be a year. In addition to using the warehouse, the proposal envisages an terminate the project at the end of eight years and to resell the planreciated for tax purposes over 10 years. However. UP expects to requires an initial investment in working capital of $350,000. Thereafter equipment in year 8 for $400,000. Finally, the project years 1 through 7. Year 1 sales of hog feed are expected to be $4.2 million, working capital is forecaste to be 10% of sales in each of slightly faster than the inflation rate. Manufacturing costs are expected to be and thereafter sales are fo 90 asted to grow by 5% a year, cost of capital is 12%. What is the NPV of UP's project? Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to 1 de