Mode Publishing is considering building a new printing facility that will involve a large initial outlay and then result in a series of positive free cash flows for 4 years. The estimated cash flows associated with this project are:

YEAR PROJECT CASH FLOW 0 (initial outlay) ? 1 $700 million 2 500 million 3 600 million 4 150 million

a. If you know that the project has a regular payback of 2.9 years, what is the initial cash outlay of the project? (in millions, round to the nearest whole number.)

b. What is the project's internal rate of return ____%? (Round to two decimal places.)