You are considering replacing a machine in your factory. The current machine cost $4,000,000 six years ago. It is being depreciated for tax purposes on a straight-line basis over its ten year life. The old machine can be sold today for $700,000 or be worthless in four years. The new machine would cost $5,000,000 and it would depreciate straight line to zero over four years. If the new machine is purchased, it would be operated for four years and then sold for $400,000. You are considering the new machine because it would result in labor savings of $1,700,000 per year. If you purchase the new machine, net working capital requirements will increase by $100,000 because of the need for additional spare parts. If your tax rate is 30% and your cost of capital is 9% per year, what is the net present value of purchasing the new machine, in thousands of dollars?