A stand$-$alone capital project has the following projected cash flows:

Year

$0$

$1$

$2$

$3$

Cash flow

$($$$4,000)$

$$1,500$

$$1,200$

$$2,395$

If the firm's cost of capital is $14\%,$ which of the following statements is true?

a$.$

the IRR is greater than the cost of capital and the project should be undertaken

b$.$

the project should be rejected because the IRR is $12\%,$ which is $<$ the project's cost of capital

c$.$

the IRR is less than $12\%$ and the project should be undertaken

d$.$

the NPV of the project is positive and the project should be undertaken