Problem 9-19 Project Evaluation (LO2, LO3) United Pigpen is considering a proposal to manufacture high-protein hog feed. The projpct 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 $165,000, 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 $1.59 million. This could be depreciated for tax paraposes straight- Illne over 10 years. However, Plgpen expects to terminate the project at the end of 8 years and to resell the plant and equipment in year 8 for $530,000. Finally, the project requires an immediate investment in working capital of 5415,000 . Thereaftec working capital is forecasted to be 10% of sales in each of years 1 through 7 . Working capital will be run down to zero in year 8 when the project shuts down. Year 1 sales of hog feed are expected to be $5.50 million, and thereafter, sales are forecasted to grow by 5% a yeat, sllghtly faster than the infiation rate. Manufacturing costs are expected to be 90% of snles, and profits are subioct to tax ot 218 . The cost of capital is 12% What is the NpV of Pigperis project? Note: Enter your answer in thousands, not in millions, rounded to the nearest dollar