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4. Simson and Simpson, Inc. has an investment proposal (Project A) with the following characteristics: PROJECT A Period Investment Cash Flows 0 $15,000 1 $10,000

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4. Simson and Simpson, Inc. has an investment proposal (Project A) with the following characteristics: PROJECT A Period Investment Cash Flows 0 $15,000 1 $10,000 2 $ 8,000 3 $6,000 Compute its net present value (NPV), internal rate of return (IRR) and modified internal rate of return (MIRR). Wherever necessary, assume a discount rate of 8%. Should the project be accepted, why? (5+7+5+3)

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