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Irish Chips is a manufacturer of prototype chips based in Dublin, Ireland Next year, in 2021, Irish Chips expects to deliver 610 prototype chips at

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Irish Chips is a manufacturer of prototype chips based in Dublin, Ireland Next year, in 2021, Irish Chips expects to deliver 610 prototype chips at an average price of $90,000. Irish Chips' marketing vice president forecasts growth of 55 prototype chips per year through 2027 . That is, demand will be 610 in 2021, 665 in 2022,720 in 2023, and so on. (i) (Click the icon to view additional information) The following data on the two options are available: (Click the icon to view the data on the two options available and additional information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Requirement 1. Calculate the cash inflows and outflows of the "modernize" and "replace" alternatives over the 20212027 period. First, determine the cash inflows and outflows of the "modernize" alternative over the 2021 to 2027 period (Use a minus sign or parentheses for a cash outflows. If an input field is not used in the table, leave that input field empty, do not enter a zero ) The plant cannot produce more than 590 prototype chips annually. To meet future demand, Irish Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $3,800,000 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. Data table Irish 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. Irish Chips' required rate of return is 16%. There is no difference between the "modernize" and "replace" alternatives in terms of required working capital. Irish Chips has a special waiver on income taxes until 2027. Requirements 1. Calculate the cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period. 2. Calculate payback period for the "modernize" and "replace" alternatives. 3. Calculate net present value of the "modernize" and "replace" alternatives. 4. What factors should Irish Chips consider in choosing between the alternatives

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