Rosita's Is Considering a Project with a Discount Rate of 9

Rosita's is considering a project with a discount rate of 9 percent.If the firm starts the project today,it will incur an initial cost of $32,260 and will receive cash inflows of $18,320 a year for 4 years.If the firm waits 1 year to start the project,the initial cost will decrease to $30,500,the cash flows will increase to $18,640 a year for 4 years,and the discount rate will decrease to 8.5 percent.What is the value of the option to wait?

A) $848.29
B) $1,471.42
C) $1,489.20
D) $681.04
E) $1,071.58