A capital budgeting project has a useful life of 6 years. The net present value (NPV) of the project is positive and the payback period (PB) is 3 years. If you change the net cash flows by adding $1,000 in year 4 and subtracting $1,000 in year 2, then

A.

teh NPV and the PB will both decrease

B.

the NPV will decrease and the PB will increase

C.

the NPV will increase and the PB will decrease

D.

the NPV and the PB will both increase