Net working capital is expected to increase by $25,000 over the 5-year life of a project. What is the effect of net working capital on the project's net present value if the cost of capital is 11%?

a) NPV will decrease by $10,163.72.

b) NPV will increase by $12,429.42.

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

d) NPV will decrease by $12,570.58.