Your company is thinking about taking on an investment project that will require an initial outlay of $$1,500,000$ at time period zero. You believe that this project will produce expected after$-$tax cash flows $($point estimates$)$ of $$560,000$ each year for $4$ years $($Years $14)$: specifically, there is a $40$ percent probability that the cash flow will be $$200,000,$ and a $60$ percent chance that the cash flow would be $$800,000.$ Given a cost of capital for this project of $12$ percent, and using the point estimates of the cash flows, you can calculate that the expected NPV for this project is $$354,791\mathrm{.}03.$

Assume now that the firm has the option of delaying the start of this project for $1$ year. If they delay the project its cost at Year $1$ will increase to $$1,700,000.$ The firm will also have better information about $($they will know$)$ what the cash flows will actually be in Years $2-5($still a $4-$year project$),$ that is$,$ whether the cash flows will be $$200,000$ or $$800,000.$ Ignoring option pricing, what is the incremental NPV that will arise, as of time period zero, if the firm delays implementation of this project for $1$ year?

$$176,642\mathrm{.}69$

$$172,820\mathrm{.}90$

$$190,091\mathrm{.}23$

$$180,816\mathrm{.}64$

$$185,309\mathrm{.}63$