A project requires an initial investment of \($200\) 000. It has a life of five years and generates net cash inflows in each of the five years of \($55\) 000. The net present value of the project when discounted at the company’s cost of capital of 8% is \($19\) 615.

The sensitivity of the investment decision to a change in the annual net cash inflow is:

(A) 35.7%

(B) 25.0%

(C) 9.8%

(D) 8.9%