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Data table The following data on the two options are available Green Chips uses straight-line depreciation, assuming zero terminal disposal value For simplicity we assume no change in prices or costs in future years. The investment will be made at the beginning of 2021, and all transactions thereafter occur on the last day of the year. Green Chips' required rate of return is 16%. There is no difference between the "modernize" and "replace" alternatives in terms of required working capital. Green Chips pays a 50% tax rate on all income. Proceeds from sales of equipment above book value are taxed at the same 50% rate Reference Reference Reference Requirements 1. Calculate the after-tax cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period. 2. Calculate the net present value of the "modernize" and "replace" alternatives. 3. Suppose Green Chips is planning to build several more plants. It wants to have the most advantageous tax position possible. Green Chips has been approached by Spain, Malaysia, and Australia to construct plants in their countries. Briefly describe in qualitative terms the income tax features that would be advantageous to Green Chips. Reference More info Next year, in 2021, Green Chips expects to deliver 555 prototype chips at an average price of $90,000. Green Chips' marketing vice president forecasts growth of 55 prototype chips per year through 2027 . That is, demand will be 555 in 2021, 610 in 2022, 665 in 2023, and so on. The plant cannot produce more than 540 prototype chips annually. To meet future demand, Green Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $4,200,000 if the plant is replaced. If the plant is modernized, the costs to modernize it are to be capitalized and depreciated over the useful life of the modernized plant. The old equipment is retained as part of the "modernize" alternative