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Simson and Simpson, Inc. has an investment proposal with the following characteristics ( $ millions ) : _ _ _ _ _ _ _ _

Simson and Simpson, Inc. has an investment proposal with the following characteristics ($ millions):
________________________________________
RAILROAD PROJECT
________________________________________
Period Investment Cash Flows
________________________________________
0 $100,000-
1- $40,000
2- $20,000
3- $(10,000)
4- $20,000
5- $40,000
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 5%. Should the project be accepted, why? (4+4+4+3) Please show all work.

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