Thornley Machines Is Considering a 3-Year Project with an Initial

Thornley 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 34%.The project will require
€23,000 in extra inventory for spare parts and accessories.Should this project be implemented if
Thornley's requires a 9% rate of return? Why or why not?

A) No; The NPV is -€2,646.00.
B) Yes; The NPV is €27,354.00.
C) Yes; The NPV is €32,593.78.
D) Yes; The NPV is €43,106.54.
E) Yes; The NPV is €196,884.40.