A firm estimated that their new project will require an additional increase in inventory of $85,100 today that will be recovered at the end of the project. If the project lasts four years and the cost of capital is 12.30%, by how much will the NPV decrease?

a.

$9,321

b.

$17,621

c.

$85,100

d.

$31,593

e.

$53,507