An investment of 7,500,000 is expected to produce the following cash flows including decommissioning costs in year 6

Year. Cash Flow

1. -7,500,000

2. 1,750,000

3. 2,250,000

4. 2,750,000

5. 1,650,000

6 -1,250,000

if the cost of the project was to rise from 7,500,000 to 8,500,000 what would be the impact on the net present value (still using a discount rate of 7.5%)?

a. the net present value would fall to -455332

b. the net present value would fall to -312,882

c. the net present value would increase to 455332

d. the net present value would increase to 312,882