Thornley Machines is considering a 3-year project with an initial cost of $960,000. The project will not directly produce any sales but will reduce operating costs by $500,000 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 $143,000. The tax rate is 34 percent. The project will require $26,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a rate of return of 14 percent? Why or why not?

yes; The NPV is $154,980.00

no; The NPV is $139,985.20

yes; The NPV is $113,985.20

yes; The NPV is $22,572.46

yes; The NPV is $230,957.13