3. BBB Inc. is considering a 3-year project with an initial cost of $745,000. The project will not directly produce any sales but will reduce operating costs by $205,000 a year. The equipment is depreciated straight-line to a zero book value over the life of the project. At the end of the project, the equipment will be sold for an estimated $35,000. The tax rate is 34%. The project will require $31,000 in extra inventory for spare parts and accessories. Calculate the NPV. Should this project be implemented if BBB requires an 8% rate of return? Why or why not? (4 marks)