Thornley Machines is considering a 3-year project with an initial cost for fixed assets of $618,000. The project will reduce operating costs by $265,000 a year. The equipment will be 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 34 percent. The project will require $23,000 in extra inventory over the project's life. What is the NPV if the discount rate assigned to the project is 14 percent?

$2,646.00

$30,086.23

$32,593.78

$43,106.54

$16,884.40