Dr Yuan Opens a Lab

Dr. Yuan opens a lab. The lab has an initial cost of $100,000. Expected net cash flow is $24,000 in the first year, growing by 15% per year. Net cash flow is revenue less expenses. Assume the lab has a 6 year life and there is no scrap value for the lab.
-Later that same year, Dr. Bhat opens a similar lab in the strip mall less than two miles away from Dr. Yuan. Dr. Yuan estimates her net cash flow in the first year will be considerably less than her initial estimate. She estimates it will be $16,000. All else equal, what happens to the NPV of Dr. Yuan's lab?

A) The NPV decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
B) The IRR decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
C) The IRR decreases, and becomes negative. Dr. Yuan should expect a loss on this investment.
D) The IRR and the NPV decrease. Dr. Yuan can still expect a positive return on her investment.
E) The IRR and the NPV decrease. Dr. Yuan should expect a negative return on her investment.