4. Simson and Simpson, Inc. has an investment proposal (Project A) with the following characteristics:

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PROJECT A

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Period Investment Cash Flows

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0 $20,000 -

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)