Irr-payback and calculating a missing cash flow

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(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?

Reference no: EM131099250

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