a six year project requires an increase in inventories of 100000at the start of the project that will no longer be needed at the end of the project. If the opportunity cost of capital is 5%, what effect will this have on the npv of the project

Decreases npv by 100000

Decreases npv by 25378

Increases npv by 25378

Increases npv by 100000

The increase in inventories will have no effect on npv