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.