A 4-year project requires a new equipment purchase that costs $12,000, which will be deprecited using the straight-line-to-0 method over 4 years. The firm can sell the machine at the end of Year 4 for a salvage value of $1,000. The annual operating cash flows for Years 1 to 4 are estimated to be, respectively, $2,807; $4,415; $5,084; and $3,865. If the tax rate is 40%, and the WACC is 10%, will you accept this project based on IRR?

A) No, because IRR is 9.62%.

B) Yes, because IRR is 12.37%.

C) No, because IRR is 13.75%.

D) Yes, because IRR is 9.98%.

E) Yes, because IRR is 13.75%.