Please Explain the following very thoroughly (I use a financial calculator and formulas not excel):

Thornley Machines is considering a 3-year project with an initial cost of $540,000. The project will not directly produce any sales but will reduce operating costs by $250,000 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 $60,000. The tax rate is 34 percent. The project will require $12,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a rate of return of 8 percent? Why or why not?