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 as follows:

YearProject Cash Flow

0 ......... ?

1 .........$800 million

2 ......... 400 million

3 ......... 300 million

4 ......... 500 million

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