7.PI, IRR, payback, and calculating a missing cash flow Mode Publishing is considering a new printing facility that will involve a large initial outlay an then result in a series of positive cash flows for 4 years. The estimated cash flows associated with this project are: YEAR O(initial outlay) 1 AWN- Project cash ? $800 million $400 million $300 million $500 million If you know that the project has a regular payback of 2.5 years and new-project's WACC is 18 percent, what is a) the initial outlay (5%) b) the profitability index (PI)? (5%) c) the internal rate of return (IRR)? (5%)