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18. Thornley Machines is considering a 3-year project with an initial cost of $400,000. The project will not directly produce any sales but will reduce operating costs by $175,000 a year before taxes. 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 $100,000. The tax rate is 35 percent. The project will require $60,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a 12 percent rate of return? Why or why not? no; The NPV is -$31,999. no; The NPV is -$28,441. no; The NPV is -$14,706. yes; The NPV is $14,266. yes; The NPV is $31,559. . . . D. E