You are evaluating a project which will cost $4,000 and has an expected future cash flow of $500 per year, forever, if it is started immediately. However, if you start the project four years from now, the cost will increase to $5,000 and the expected future cash flows will increase to $750 per year (and continue to be so forever). If the required rate of return is 8%, using NPV, what would your decision be? Assume that under both scenarios, the cash inflows will occur at the end of each year. (Tip: Check problem #3 on Practice Problem Set 8.)

Group of answer choices

Cannot decide based on the available information.

Reject the project.

Begin the project immediately.

Decide to start the project four years from now