A project has been assigned a discount rate of 12 percent. If the project starts immediately, it will have an initial cost of $550 and cash inflows of $385 a year for 2 years. If the start is delayed one year, the initial cost will rise to $625 and the cash flows will increase to $455 a year for 6 years. What is the value of the option to wait?

Value of option to wait =

* don't round steps