Use the following information to answer questions #13 through #15. Thomley Machines is considering a 3-year project with an initial cost of $618,000. The project will not directly produce any sales but will reduce operating costs by $265,000 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 $60,000. The tax rate is 38 percent. 13. What is the total cash flow in year 37 a. $265,000 $244,940 c. $284,540 d. $279,780 $282.160 14. Should this project be implemented if Thornley's requires a 9 percent rate of return? Why? yes: The NPV is $28,680.23 no: The NPV is $2,646.00 b. 4. yes: The $32.593.78 d. yes: The NPV is $24,766.69 e. yes: The NPV is $43,106.54 15. What happens to the NPV if an additional increase in net working capital of $20,000 is required at the start of the project? (Hint: you do not have to make additional calculations for this question; you can look at the choices and answer the question conceptually. But you may calculate also) 4. The NPV is unchanged. b The NPV reduces by $20,000 9 The NPV increases by $20,000. d. The NPV reduces by $4,556 9 The NPV increases by $4,556.