Question: 8A 8. (IRR, payback, and calculating a missing cash flow) Mode Publishing is considering building a new printing facility that will involve a large initial

8A

8A 8. (IRR, payback, and calculating a missing cash flow) Mode Publishing

8. (IRR, payback, and calculating a missing cash flow) Mode Publishing is considering building a new printing facility that will involve a large initial outlay and then result in a series of positive cash flows for 4 years. The estimated cash flows associated with this project are: 4. If you know that the project has a regular payback of 2.5 years, what is the project's internal rate of return? If you know that the project has a regular payback of 2.5 years, what is the initial cash outlay of the project? $ million (Round to the nearest whole number.) What is the project's internal rate of return? % (Round to two decimal places.) 4: Data Table PORJECT CASH FLOW YEAR ? 0 (initial outlay) 1 $800 million 2 350 million 3 450 million 4 100 million (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.)

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