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Assume all cash flows occur at the end of each period. a . What is the net present value ( at the discount rate of
Assume all cash flows occur at the end of each period.
a What is the net present value at the discount rate of of this project? Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.
b Perots engineers have determined that spending $ million more on development will allow them to add even more advanced features. Having a more advanced chip will allow them to price the chip $ higher in both years $ for year and $ for year What is the NPV of the project if this option is implemented? Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.
c If sales are only the first year and the second year, what would the NPV of the project be Assume the development costs and sales price are as originally estimated. Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.
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