Thornley Machines is considering a 3-year project with an initial cost of $690,000. The project will not directly produce any sales but will reduce operating costs by $405,000 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 $75,000. The tax rate is 34 percent. The project will require $17,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a rate of return of 13 percent? Why or why not?

yes; The NPV is $154,866.06

yes; The NPV is $125,500.00

yes; The NPV is $219,707.03

no; The NPV is $171,866.06

yes; The NPV is $64,412.62