Thornley Machines is considering a 3-year project with an initial cost of $930,000. The project will not directly produce any sales but will reduce operating costs by $450,000 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 $140,000. The tax rate is 34 percent. The project will require $25,000 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 $4,129.14
	yes; The NPV is $190,963.03
	yes; The NPV is $76,491.89
	yes; The NPV is $107,200.00
	no; The NPV is $101,491.89