Thornley Machines is considering a 3-year project with an initial cost of $1,110,000. The project will not directly produce any sales but will reduce operating costs by $680,000 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 $165,000. The tax rate is 34 percent. The project will require $31,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a rate of return of 19 percent? Why or why not?

yes; The NPV is $27,133.73

yes; The NPV is $304,951.66

yes; The NPV is $171,615.05

yes; The NPV is $313,100.00

no; The NPV is $202,615.05