Royal company is considering a $3-$year project with an initial cost of $$618,000.$ The project will not directly produce any sales but

will reduce operating costs by $$265,000$ 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 $34\%.$ The project will require

$$23,000$ in extra inventory$($ as working capital$)$ for spare parts and accessories. what is the net present value of this project Should

this project be implemented if Royal requires a $9\%$ rate of return? Why or why not?