Home Safety Appliances is considering a project that would increase the efficiency and safety of their assembly line. The initial investment will be $350,000. They believe annual cash inflows will be $67,000 and annual cash outflows will be $32,000. The project will last 15 years with a discount factor of 8%. They also believe that intangible benefits will effectively increase cash inflows by $12,000 annually and decrease cash outflows by $3,000 annually. What is the difference in net present value (NPV) of the project when intangible benefits are or are not included?

A :

NPV is $27,555.80 higher when intangibles are included.

B :

NPV is $128,392.20 lower when intangibles are included.

C :

NPV is $27,555.80 lower when intangibles are included.

D :

NPV is $128,392.20 higher when intangibles are included.