Question 26 (2 points) A five-year project requires an increase in inventories of $100,000 at the start of the project that will no longer be needed at the end of the project. If the opportunity cost of capital is 6%, what effect will this have on the NPV of the project? Decrease NPV by $100,000 Decrease NPV by $25,274 Increase NPV by $25,274 Increase NPV by $100,000 The increase in inventories will have no effect on NPV