Thornley Machines is considering a 3-year project with an initial cost of $750,000. The project will not directly produce any sales but will reduce operating costs by $420,000 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 $81,000. The tax rate is 34 percent. The project will require $19,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a rate of return of 15 percent? Why or why not?

no; The NPV is $124,627.76

yes; The NPV is $175,783.00

yes; The NPV is $105,627.76

yes; The NPV is $20,788.44

yes; The NPV is $108,860.00