Gentech is considering a project that has been assigned a discount rate of 12 percent. If the company starts the project today, it will incur an initial cost of $546,000 and will receive cash inflows of $197,000 a year for five years. If the company waits one year to start the project, the initial cost will rise to $633,000 and the cash flows will increase to $235,000 a year for five years. What is the value of the option to wait?

$23,196.19

$25,571.33

$27,039.81

$29,153.70

$31,449.58