Wilson's Antiques is considering a project that has an initial cost today of $$10,000.$ The project has a two$-$year life with cash inflows of $$6,500$ a year. Should Wilson's decide to wait one year to commence this project, the initial cost will increase by $5$ percent and the cash inflows will increase to $$7,500$ a year. What is the value of the option to wait if the applicable discount rate is $10$ percent?

Question $14$Select one:

a$.$

$$1,735\mathrm{.}54$

b$.$

$$1,509\mathrm{.}28$

c$.$

$$1,606\mathrm{.}76$

d$.$

$$1,235\mathrm{.}54$

e$.$

$$1,006\mathrm{.}76$