Mode Publishing is considering a new printing facility that will involve a large initial outlay and then results in the following cash inflows. Year Project Cash Inflows: year 1: $600,000; year 2: $600,000; year 3: $600,000; year 4: $600,000.

a. If you know that the project has a regular payback period of 2.54 years, what is the projects internal rate of return?

b. If you know that the project has a profitability index of 1.50, cost of capital of 12%, what should be the net investment?