Big Big Red Corporation is considering a project with an Operating Cash Inflow of $24,500 for the first year with that amount growing 4% each year for the following four years, a time point zero cash outflow for Capital Investments of $90,000 with a year five Net Salvage Value of $18,000, and a Net Working Capital Investment of 12% of the following time periods OCF. With an opportunity cost of capital is 11%, the project has a Net Present Value of $16,689.38.

How much would the Net Present Value improve (to the nearest dollar) if it turns out that there is no incremental change to the Net Working Capital due to the project? [Do not round interim calculations]

Multiple Choice

$1,912

$4,312

None of the above

$1,284

$874