Thornley Machines is considering a 3-year project with an initial cost of $1,050,000. The project will not directly produce any sales but will reduce operating costs by $600,000 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 $159,000. The tax rate is 34 percent. The project will require $29,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a rate of return of 17 percent? Why or why not?

yes; The NPV is $142,564.45

no; The NPV is $171,564.45

yes; The NPV is $22,029.71

yes; The NPV is $243,940.00

yes; The NPV is $271,259.87