You are a finance manager for a company with 750 common shares outstanding that currently trade for $53. After analyzing a project, you find that the NPV will be $12000 when future cash flows are discounted at a rate of 13%. If you accept this project, what immediate effect on the stock price will be most likely?

Select one:

a. It will increase by $2.08

b. It will decrease by $2.08

c. It will increase by $16

d. It will decrease by $16

e. One cannot generalize since prices depend mostly on economy-wide factors.