You are considering a project which has been assigned a discount rate of 5 percent. If you start the project today, you will incur an initial cost of $3,700 and will receive cash inflows of $2,500 a year for 2 years. If you wait one year to start the project, the initial cost will rise to $3,920 and the cash flows will increase to $2,857 a year for 2 years. What is the value of the option to wait? (Do not round intermediate calculations.)

$605.85

$377.51

$488.98

$2,718.37

$443.81