You are considering a project that can be started this year or could be delayed a year. If the project starts immediately, it will have an initial cost of $9,600 and cash inflows of $7,000 a year for three years. If the start is delayed one year, the initial cost will rise to $10,400 and the cash flows will increase to $7,700 a year for three years. What is the value of the option to wait if the discount rate of 12 percent? (Choose closest answer)

$4.00

$21.60

$33.40

$44.00

$14.06