Net working capital is expected to increase by $25,000 in year 5 of a project. If this extra working capital is recovered when the project ends in year 6, what is the effect on the project's net present value, if the cost of capital is 15%?

Multiple Choice

a NPV will not be affected because the $25,000 will all be recouped.

b NPV will decrease by $1,621.23.

c NPV will increase by $12,429.42.

d NPV will decrease by $25,000