Expert Chips is a manufacturer of prototype chips based in Buffalo, New York. Requirements 1 and 2. Calculate the after-tax cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period and calculate the net present value for each alternative. Let's begin with the "modernize" alternative. Start by computing the present value of the after-tax cash flows from operations, then calculate the present value of the after-tax cash savings from depreciation and the terminal disposal value, and finally, determine the total net present value (NPV) of the investment for the "modernize" alternative. (Round intermediary calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a negative present value of net cash flows.) The following data on the two options are available: Next year, in 2021, Supreme Chips expects to deliver 575 prototype chips at an average price of $90,000. Supreme Chips' marketing vice president forecasts growth of 65 prototype chips per year through 2027. That is, demand will be 575 in 2021,640 in 2022, 705 in 2023 , and so on. The plant cannot produce more than 560 prototype chips annually. To meet future demand, Supreme Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $4,500,000 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 Supreme Chips uses straight-line depreciation, assuming zero terminal disposal value. For simplicity, retained as part of the "modernize" alternative. 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. Supreme Chips' required rate of return is 6%. There is no difference between the "modernize" and "replace" alternatives in terms of required working capital. Supreme Chips pays a 45% tax rate on all income. Proceeds from sales of eauioment above book value are taxed at the same 45% rate. Requirements Net initial investment After-tax cash flows from operations: 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 Supreme Chips is planning to build several more plants. It wants to have the most advantageous tax position possible. Supreme 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 Supreme Chips