5. Merriweather Printing Companys project has the following cash flows:

If this projects payback period is 2.5 years, then its initial cost equals the total (undiscounted) of the first two years cash flows, plus half of the third years:

\begin{tabular}{|c|c|} \hline t & PROJECT \\ \hline 0 & ? \\ \hline 1 & $800,000 \\ \hline 2 & $400,000 \\ \hline 3 & $300,000 \\ \hline 4 & $500,000 \\ \hline \end{tabular} IRR20.41%