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

(IRR, payback, and calculating a missing cash flow) Mode Publishing is considering a new printing facility that will involve a large initial outlay and then result in a series of positive cash flows for four years. The estimated cash flows associated with this project are:

year project cash flow

0 ?

1 800

2 400

3 300

4 500

If you know that the project has a regular payback of 2.5 years, what is the project's internal rate of return?

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