Lindley Corp. is considering a new product that would require an after-tax investment of $11.0 million now, at t = 0. If the new product is well received, then the project would produce after-tax cash flows of $5.4 million at the end of each of the next 3 years (t = 1, 2, 3), but if the market did not like the product, then the after-tax cash flows would be only $2.0 million per year. There is a 50% probability that the market will be good. The firm could delay the project for a year while it conducts a test to determine if demand is likely to be strong or weak. The project's after-tax cost and expected annual after-tax cash flows would be the same whether the project is delayed or not. The project's WACC is 8.6%. What is the net present value (in thousands) of the project after considering the investment timing option? Do not round intermediate calculations. a. $1,384 b. $2,548 c. $1,274 d. $838 e. $1,567