A company is considering a project with the following cash flows and a discount rate of 12%:

• Initial outlay: $4,000
• Year 1: $1,200
• Year 2: $1,800
• Year 3: $1,500
• Year 4: $2,000

Requirements:

1. Calculate the Net Present Value (NPV) of the project.
2. Determine if the project should be accepted based on the NPV.
3. Calculate the Internal Rate of Return (IRR).
4. Explain the significance of the IRR in project evaluation.