A company is considering a project with a cost of $1,260,000 and a 7-year life. There would be no salvage value at the end of 7 years. Annual net operating income (ignoring taxes) would be as shown in the below table:

Sales $2,000,000

Variable expenses $1,350,000

Contribution margin $650,000

Fixed Cash expenses $300,000

Depreciation $180,000

Net operating income $170,000

The company's required rate of return is 11%.

Given the above details

a) What is the project's payback period?

b) What is the project's internal rate of return?