(Calculating IRR, payback, and a missing cash flow) The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing facility.

The project is expected to provide a series of positive cash flows for each of the next four years. The estimated cash flows associated with this project are as follows:

If you know that the project has a regular payback period of 2.5 years, what is the project’s IRR?

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Year Project Cash Flow 0 1 234 ? $800,000 400,000 300,000 500,000