Firm C is considering a project with an up-front cost at t = 0 of $1500. (All dollars in this problem are in thousands.) The projects subsequent cash ows are critically dependent on whether a competitors product is approved by the Food and Drug Administration (FDA). If the FDA rejects the competitive product, Cs product will have high sales and cash ows, but if the competitive product is approved, that will negatively impact company C. There is a 75% chance that the competitive product will be rejected, in which case the expected cash ows will be $500 at the end of each of the next seven years (t = 1 to 7). There is a 25% chance that the competitors product will be approved, in which case the expected cash ows will be only $25 at the end of each of the next seven years (t = 1 to 7). Company C will know for sure one year from today whether the competitors product has been approved. Company C is considering whether to make the investment today or to wait a year to nd out about the FDAs decision. If it waits a year, the projects up-front cost at t = 1 will remain at $1,500, the subsequent cash ows will remain at $500 per year if the competitors product is rejected and $25 per year if the alternative product is approved. However, if company C decides to wait, the subsequent cash ows will be received only for six years (t = 2 ... 7). Assuming that all cash ows are discounted at 10%, if Firm C chooses to wait a year before proceeding, how much will this increase or decrease the projects expected NPV in todays dollars (i.e., at t = 0), relative to the NPV if it proceeds today