XYZ is considering a project that has an initial cost today of $10,000. The project has a two-year life with cash inflows of $6,500 a year. Should XYZ decide to wait one year to commence this project, the initial cost will increase by 5 percent and the cash inflows will increase to $7,500 a year. What is the value of the option to wait if the applicable discount rate is 10 percent?

	a.	$1,235.54
	b.	$1,735.54
	c.	$1,006.76
	d.	$1,606.76
	e.	$1,509.28