You are considering a project that has been assigned a discount rate of 8 percent. If you start the project today, you will incur an initial cost of $500 and will receive cash inflows of $365 a year for three years. If you wait one year to start the project, the initial cost will rise to $570 and the cash flows will increase to $420 a year for three years. What is the value of the option to wait (i.e., the difference between the NPV of the project if started today and the NPV of the project if you decide to wait)? (show work)

$33.79

$27.50

$41.16

$25.08

$48.75