Question: (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

(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:

Year

Project Cash Flow

0

?

1

800 Million

2

400 Million

3

500 Million

4

100 Million

If you know that the project has a regular payback of 2.8 years, what is the initial cash outlay of the project? (Round to the nearest whole number)

What is the project's internal rate of return? (Round to two decimal places)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!