A New,more Efficient Machine Will Last 4 Years and Allow

Multiple Choice

A new,more efficient machine will last 4 years and allow inventory levels to decrease by $100,000 during its life.At a cost of capital of 13%,how does the net working capital change affect the project's NPV?

A) NPV increases by $38,668.
B) NPV increases by $61,330.
C) NPV increases by $100,000.
D) NPV increases by $138,668.