The Future Cash Flows of a Stand-Alone Capital Project Are $\begin{array}{lllll}\text { Year } & 0 & 1 & 2 & 3&4 \\\text { Cash flow } & (\$ 4,000) & \$ 1,500 & \$1,500 & \$ 1,500&\$1,500\end{array}$

The future cash flows of a stand-alone capital project are: $\begin{array}{lllll}\text { Year } & 0 & 1 & 2 & 3&4 \\\text { Cash flow } & (\$ 4,000) & \$ 1,500 & \$1,500 & \$ 1,500&\$1,500\end{array}$ If the firm's cost of capital is 12%, which of the following statements is true?

A) The NPV is > $0 and the IRR is less than 12.5%.
B) The NPV is < $0 and the IRR is higher than 12.5%.
C) The NPV is > $0 and the IRR is approximately 18.5%.
D) The NPV is < $0 and the IRR is approximately 18.5%.