Question: . Simson and Simpson, Inc. has an investment proposal (Project A) with the following characteristics: PROJECT A Period Investment Cash Flows 0

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

________________________________________

PROJECT A

________________________________________

Period Investment Cash Flows

________________________________________

0 $100,000 -

1 $40,000

2 $20,000

3 $(30,000)

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+5+3+3)

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Question: . Simson and Simpson, Inc. has an investment proposal (Project A) with the following characteristics: ________________________________________ PROJECT A ________________________________________ Period Investment Cash Flows ________________________________________ 0

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Question: . Simson and Simpson, Inc. has an investment proposal (Project A) with the following characteristics: PROJECT A Period Investment Cash Flows 0