Thornley Machines is thinking of three-year project with the initial cost of $660,000. Project will not directly make any sales but will decrease operating costs by $400,000 a year. Equipment is depreciated straight-line to the zero book value over life of project. At the end of project equipment will be sold for the evaluated $72,000. Tax rate is 34 percent. Project will need $16,000 in extra inventory for spare parts and accessories. Should the project be implemented if Thornley's needs the rate of return of 12%? Explain why or why not?