A project requires an additional commitment of $100,000 in net working capital in each of years 1 to 4 . These extra investments can be recovered in year 5 when the project comes to an end. What is the effect on NPV? Multiple Cholce NPV is reduced by $100,000 NPV is reduced by the present value of $100.000 discounted ot the firm's cost of capital for 4 yeats. NPV is reduced by the present value of $100,000 discounted at the firm's cost of capital for each of years to 4 minus the discounted value of the $400,000 that is recovered in year 5. No opportunity cost is involved