A company is considering a project with an initial cost today of $20,000. The project has a 3-year life with cash inflows of $5,500 a year. Should the company decide to wait one year to commence this project, the initial cost will increase by 5 %, and the cash inflows will increase by 6 % a year. Should the company decide to wait two years to commence this project, the initial cost will increase by 6 %, and the cash inflows will increase by 7 % a year. What is the value of the option to wait if the applicable discount rate is 10 percent?