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.