National Chips is a manufacturer of prototype chips based in Dublin, Ireland. Next year, in 2018, National Chips expects to deliver 562 prototype chips at an average price of $75,000. National Chips' marketing vice president forecasts growth of 75 prototype chipa per year through 2024. That is and will be 562 in 2018.637 in 2019.712 in 2020, and so on. Click the icon to wasional information) Click the icon to when the bodo ve and additional formation Present our ott table present Value Analyst 31. abin Fuhrit 1 table Future Value o Auto 51 table Read the rest Requirement 1. Caictate the cash info and out of the modemise and replace themes over the 2016-2024 period For determine the com utom and buttons of the moderne temave over the 2016 2014 bero. Uma von or partes for a chows. Ita en la notted in the title wave that the emplo, voorral Unita sold Net cash contribution Ini Investments Proceeds from sale of woment Year Jan 1. 2018 Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Dec 31, 2072 Dec 31, 2023 Dec 31, 2024 More info - X The plant cannot produce more than 542 prototype chips annually. To meet future demand, National Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $3,700,000 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 updated plant. The old equipment is retained as part of the modernize alternative. The following data on the two options are available: Print Done Data table - X Modernize Replace Initial investment in 2018 $ 34,800,000 $ 64,500,000 Terminal disposal value in 2024 $ 7,200,000 $ 17,000,000 Useful life 7 years 7 years Total annual cash operating cost per prototype chip $ 59,500 $ 49,000 National 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 2018, and all transactions thereafter occur on the last day of the year. National Chips' required rate of return is 6%. There is no difference between the modernize and replace alternatives in terms of required working capital. National Chips has a special waiver on income taxes until 2024. Print Done Requirements 1. Calculate the cash inflows and outflows of the modernize and replace alternatives over the 2018 - 2024 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 National Chips consider in choosing between the alternatives? Print Done Reference Compound Amount of Annuity of $1.00 in Arrears (Future Value of Annuity) Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.020 2040 2.060 2080 2.100 2.120 2140 2.160 2.180 2 200 Period 3 3.060 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.122 4.246 4375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.308 6 633 6.975 7336 7.716 8.115 8.536 8.977 9.442 9.930 Perlod 7 7.434 7.896 8.394 8.923 9.487 10.089 10.730 11 414 12.142 12916 Period 8 8.583 9.214 9.897 10.637 11 436 12300 13.233 14 240 15.327 16.499 Period 9 9.756 10.583 11491 12488 13.579 14.776 16.085 $7.519 19.086 20.799 Period 10 10 950 12.008 13.181 14 487 15.937 17.549 19.337 21.321 23 521 25.959 Period 11 12.169 13.486 14.972 16.645 18 531 20.655 23.045 25.733 28.755 32.150 Period 12 13.412 15.026 16,870 18.977 21 384 24.133 27271 30.850 34.931 39.581 Period 13 14.680 16.627 18.882 21.495 24.523 28.02932089 36 786 42219 48 497 Period 14 15.974 18.292 21.015 24 215 27 975 32.393 37 581 43.672 50.818 59. 196 Period 15 17 293 20.024 23.276 27152 31.772 37 280 43.842 51.660 60.905 72035 Period 16 18.639 21.825 25.673 30 324 35.950 42.753 50.980 60.925 72939 87.442 Period 17 20.012 23. 698 28.213 33.750 40 545 48.884 59.118 71,673 87 105,931 Period 18 21.412 25 645 30.906 37.450 45.599 55.750 68.39484.141 103.740 128.117 Period 19 22.841 27.671 33.760 41.446 51.159 63 440 78.969 98.603 123.414 154.740 Period 20 24.297 29.778 36.786 45.762 57 275 72.052 91.025 115.380 146.628 186.688 Period 21 25.783 31.969 39.993 50.423 64 002 81.699 104.768 134.841 174.021 225.026 Period 22 27 299 34.248 43 392 55.457 71.403 92.503 120.436 157.415 206.345 271.031 Period 23 28 845 36.618 46.996 60.893 79 543 104 603 138 297 183.601 244 487 326.237 Period 24 30 422 39.083 50.816 66.765 88.497 118 155 158.659 213.978 289.494 392.484 Period 25 32.030 41.646 54 865 73.106 98.347 133.334 181.871 249 214 342.603 471.981 Period 26 33.671 44.312 59.156 79.954 109.182 150 334 208.333 290.088 405 272 567 377 22% 1.000 2 220 3.708 5.524 7.740 10442 13.740 17.762 22.670 28.657 35962 44.874 55.746 69010 85.192 104.935 129.020 158.405 194.254 237 989 291.347 356.443 435.861 532.750 650.955 796.165 24% 1.000 2.240 3.778 5,684 8.048 10.980 14 615 19.123 24.712 31.643 40 238 50.895 64. 110 80 496 100 815 126.011 157.253 195 994 244.033 303.601 377 465 469 056 582.630 723 461 898,092 1114634 26% 28% 1.000 1.000 2.250 2.280 3.848 3.918 5.848 6016 8.368 8.700 11.514 12.136 15.546 16.534 20.588 22. 163 26.940 29.389 34.945 38.593 45 031 50.398 57 739 65.510 73.751 84.853 93 926 109.612 119,347 141 303 151 377 181.868 191.735 233.791 242 585 300.252 306.658 385 323 387 389 494213 489. 110 633.593 617 278 811.999 778.771 1040.358 982.251 1332650 1238.636 1706.803 1561.682 2185.708 30% 1.000 2 300 3.990 6.187 9.043 12.756 17 583 23.858 32.015 42 619 56.405 74 327 97.625 127.913 167.286 218.472 285,014 371.518 483 973 630.165 820 215 1067280 1388.464 1806.003 2348.803 3054.444 32% 1.000 2.320 4.062 6.382 9.398 13.406 18.696 25.678 34895 47.062 63.122 84 320 112 303 149 240 197 997 262356 347 309 459.449 607 472 802.863 1060.779 1401.229 1850.622 2443.821 3226.844 4260 434 Print Done 1 Reference 5.590 npound Amount of $1.00 (The Future Value of $1.00) riods 2% 4% 6% 8% 10% 12% 14% 16% 18% rod 1 1.020 1.040 1.060 1.080 1.100 1.120 1:140 1.160 1.180 riod 2 1.040 1.062 1.124 1.166 1.210 1.254 1.300 1.346 1.392 riod 3 1.061 1.125 1.191 1.260 1.331 1.405 1482 1.561 1.643 rod 4 1,082 1.170 1262 1.360 1.464 1.574 1.689 1.811 1.939 riod 5 1.104 1.217 1338 1.469 1.611 1.762 1.925 2.100 2.288 riod 6 1.126 1265 1419 1,587 1.772 1.974 2.195 2436 2.700 rod 7 1.149 1.316 1.504 1.714 1.940 2.211 2502 2826 3.185 riod 8 1.172 1.369 1.594 1.851 2.144 2.476 2853 3278 3.759 riod 9 1.195 1423 1.689 1.999 2355 2.773 3252 3.803 4.435 Hod 10 1219 1480 1.791 2.159 2.594 3.106 3.707 4.411 5.234 Hod 11 1 243 1.539 1.898 2.332 2853 3.479 4 225 5.117 6.176 od 12 1.268 1.601 2012 2518 3.138 3.896 4.818 5.936 7.288 Hod 13 1 294 1.665 2.133 2720 3.452 4.363 5.492 6.886 8.500 fod 14 1 319 1.732 2.261 2.937 3.797 4.887 6.261 7.988 10.147 od 15 1.346 1.801 2.397 3.172 4.177 5.474 7138 9.266 15.974 Hod 16 1 373 1.873 2540 3.426 4.595 6.130 8.137 10.748 14.129 fod 17 1.400 1.948 2.693 3.700 5.054 6.860 9276 12.468 16.672 Hod 18 1.428 2026 2.854 3.996 5.560 7.690 10.575 14.463 19.673 Hod 19 1.457 2.107 3.026 4.316 6.116 8.613 12.056 16.777 23.214 Hod 20 1 486 2.191 3207 4.661 6.727 9846 13.743 19.461 27393 Hod 21 1.516 2279 3.400 5034 7.400 10.804 15668 22 574 32 324 Hod 22 1.546 2370 3.604 5.437 8.140 12.100 17 861 26.186 38.142 Hod 23 1,677 2465 3.820 5,871 8.954 13562 20 362 30.376 45.008 Hod 24 1.608 2563 4.049 6.341 9.850 15.179 23 212 35.236 63.109 Hod 25 1.641 2.666 4.292 6.848 10.835 17000 26.462 40874 62669 Hod 26 1.673 2.772 4.549 7396 11.918 19.040 30.167 47.414 73.949 EE 20% 1.200 1.440 1.728 2074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12830 15.407 18.488 22.186 26.623 31.948 38 338 46.005 55 205 66.247 79.497 95 396 114 475 22% 24% 1220 1 240 1.488 1538 1816 1.907 2215 2364 2.703 2932 3297 3.635 4023 4508 4.908 5.987 6.931 7.305 8.594 8.912 10.657 10.872 13.215 13.264 16 386 10.162 20.319 19.742 25.106 24.086 31 243 29.384 38.741 35,849 48.030 43.736 59.568 53.358 73.854 65.006 91.592 79.418 113 574 96 889 140.631 118.205 174.631 144 210 216.542 175.836 268 512 26% 1.260 1.588 2000 2.520 3.176 4.002 5.042 6.353 8.005 10.086 12.708 16.012 20.175 25.421 32.030 40.358 50.851 64.072 80.731 101.721 128.169 161.492 203.480 256,385 323.045 407.037 TA 28% 1.280 1.638 2.097 2684 3.436 4.398 5.629 7206 9.223 11.806 15.112 19.343 24.759 31.691 40,565 51.923 86.461 85.071 108.890 139 380 178.406 228 360 292 300 374.144 478.905 612 900 30% 1.300 1 690 2.197 2856 3.713 4.827 6.275 8.157 10.604 13.780 17922 23295 30288 39 374 51.186 66.542 86.504 112455 146.192 to oso 247.006 321.184 417.539 542 801 705.041 917 333 BAAR 32% 1320 1.742 2300 3.036 4007 5290 6.983 9217 12.166 16.060 21.190 27983 36 907 48.757 64 359 84.954 112.139 148.024 195.391 257,916 340.449 449.393 593.199 783 023 1033.500 1364 339 40% 1.400 1.960 2.744 3.842 5378 7.630 10.541 14.75 20.661 28.924 40:49 56.694 79.371 111.12 155.56 217.79 304.91 42687 597 63 83668 1171.35 1639 8 22958 3214.20 4499.86 8299 30 Print Done National Chips is a manufacturer of prototype chips based in Dublin, Ireland. Next year, in 2018, National Chips expects to deliver 562 prototype chips at an average price of $75,000. National Chips' marketing vice president forecasts growth of 75 prototype chipa per year through 2024. That is and will be 562 in 2018.637 in 2019.712 in 2020, and so on. Click the icon to wasional information) Click the icon to when the bodo ve and additional formation Present our ott table present Value Analyst 31. abin Fuhrit 1 table Future Value o Auto 51 table Read the rest Requirement 1. Caictate the cash info and out of the modemise and replace themes over the 2016-2024 period For determine the com utom and buttons of the moderne temave over the 2016 2014 bero. Uma von or partes for a chows. Ita en la notted in the title wave that the emplo, voorral Unita sold Net cash contribution Ini Investments Proceeds from sale of woment Year Jan 1. 2018 Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Dec 31, 2072 Dec 31, 2023 Dec 31, 2024 More info - X The plant cannot produce more than 542 prototype chips annually. To meet future demand, National Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $3,700,000 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 updated plant. The old equipment is retained as part of the modernize alternative. The following data on the two options are available: Print Done Data table - X Modernize Replace Initial investment in 2018 $ 34,800,000 $ 64,500,000 Terminal disposal value in 2024 $ 7,200,000 $ 17,000,000 Useful life 7 years 7 years Total annual cash operating cost per prototype chip $ 59,500 $ 49,000 National 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 2018, and all transactions thereafter occur on the last day of the year. National Chips' required rate of return is 6%. There is no difference between the modernize and replace alternatives in terms of required working capital. National Chips has a special waiver on income taxes until 2024. Print Done Requirements 1. Calculate the cash inflows and outflows of the modernize and replace alternatives over the 2018 - 2024 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 National Chips consider in choosing between the alternatives? Print Done Reference Compound Amount of Annuity of $1.00 in Arrears (Future Value of Annuity) Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.020 2040 2.060 2080 2.100 2.120 2140 2.160 2.180 2 200 Period 3 3.060 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.122 4.246 4375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.308 6 633 6.975 7336 7.716 8.115 8.536 8.977 9.442 9.930 Perlod 7 7.434 7.896 8.394 8.923 9.487 10.089 10.730 11 414 12.142 12916 Period 8 8.583 9.214 9.897 10.637 11 436 12300 13.233 14 240 15.327 16.499 Period 9 9.756 10.583 11491 12488 13.579 14.776 16.085 $7.519 19.086 20.799 Period 10 10 950 12.008 13.181 14 487 15.937 17.549 19.337 21.321 23 521 25.959 Period 11 12.169 13.486 14.972 16.645 18 531 20.655 23.045 25.733 28.755 32.150 Period 12 13.412 15.026 16,870 18.977 21 384 24.133 27271 30.850 34.931 39.581 Period 13 14.680 16.627 18.882 21.495 24.523 28.02932089 36 786 42219 48 497 Period 14 15.974 18.292 21.015 24 215 27 975 32.393 37 581 43.672 50.818 59. 196 Period 15 17 293 20.024 23.276 27152 31.772 37 280 43.842 51.660 60.905 72035 Period 16 18.639 21.825 25.673 30 324 35.950 42.753 50.980 60.925 72939 87.442 Period 17 20.012 23. 698 28.213 33.750 40 545 48.884 59.118 71,673 87 105,931 Period 18 21.412 25 645 30.906 37.450 45.599 55.750 68.39484.141 103.740 128.117 Period 19 22.841 27.671 33.760 41.446 51.159 63 440 78.969 98.603 123.414 154.740 Period 20 24.297 29.778 36.786 45.762 57 275 72.052 91.025 115.380 146.628 186.688 Period 21 25.783 31.969 39.993 50.423 64 002 81.699 104.768 134.841 174.021 225.026 Period 22 27 299 34.248 43 392 55.457 71.403 92.503 120.436 157.415 206.345 271.031 Period 23 28 845 36.618 46.996 60.893 79 543 104 603 138 297 183.601 244 487 326.237 Period 24 30 422 39.083 50.816 66.765 88.497 118 155 158.659 213.978 289.494 392.484 Period 25 32.030 41.646 54 865 73.106 98.347 133.334 181.871 249 214 342.603 471.981 Period 26 33.671 44.312 59.156 79.954 109.182 150 334 208.333 290.088 405 272 567 377 22% 1.000 2 220 3.708 5.524 7.740 10442 13.740 17.762 22.670 28.657 35962 44.874 55.746 69010 85.192 104.935 129.020 158.405 194.254 237 989 291.347 356.443 435.861 532.750 650.955 796.165 24% 1.000 2.240 3.778 5,684 8.048 10.980 14 615 19.123 24.712 31.643 40 238 50.895 64. 110 80 496 100 815 126.011 157.253 195 994 244.033 303.601 377 465 469 056 582.630 723 461 898,092 1114634 26% 28% 1.000 1.000 2.250 2.280 3.848 3.918 5.848 6016 8.368 8.700 11.514 12.136 15.546 16.534 20.588 22. 163 26.940 29.389 34.945 38.593 45 031 50.398 57 739 65.510 73.751 84.853 93 926 109.612 119,347 141 303 151 377 181.868 191.735 233.791 242 585 300.252 306.658 385 323 387 389 494213 489. 110 633.593 617 278 811.999 778.771 1040.358 982.251 1332650 1238.636 1706.803 1561.682 2185.708 30% 1.000 2 300 3.990 6.187 9.043 12.756 17 583 23.858 32.015 42 619 56.405 74 327 97.625 127.913 167.286 218.472 285,014 371.518 483 973 630.165 820 215 1067280 1388.464 1806.003 2348.803 3054.444 32% 1.000 2.320 4.062 6.382 9.398 13.406 18.696 25.678 34895 47.062 63.122 84 320 112 303 149 240 197 997 262356 347 309 459.449 607 472 802.863 1060.779 1401.229 1850.622 2443.821 3226.844 4260 434 Print Done 1 Reference 5.590 npound Amount of $1.00 (The Future Value of $1.00) riods 2% 4% 6% 8% 10% 12% 14% 16% 18% rod 1 1.020 1.040 1.060 1.080 1.100 1.120 1:140 1.160 1.180 riod 2 1.040 1.062 1.124 1.166 1.210 1.254 1.300 1.346 1.392 riod 3 1.061 1.125 1.191 1.260 1.331 1.405 1482 1.561 1.643 rod 4 1,082 1.170 1262 1.360 1.464 1.574 1.689 1.811 1.939 riod 5 1.104 1.217 1338 1.469 1.611 1.762 1.925 2.100 2.288 riod 6 1.126 1265 1419 1,587 1.772 1.974 2.195 2436 2.700 rod 7 1.149 1.316 1.504 1.714 1.940 2.211 2502 2826 3.185 riod 8 1.172 1.369 1.594 1.851 2.144 2.476 2853 3278 3.759 riod 9 1.195 1423 1.689 1.999 2355 2.773 3252 3.803 4.435 Hod 10 1219 1480 1.791 2.159 2.594 3.106 3.707 4.411 5.234 Hod 11 1 243 1.539 1.898 2.332 2853 3.479 4 225 5.117 6.176 od 12 1.268 1.601 2012 2518 3.138 3.896 4.818 5.936 7.288 Hod 13 1 294 1.665 2.133 2720 3.452 4.363 5.492 6.886 8.500 fod 14 1 319 1.732 2.261 2.937 3.797 4.887 6.261 7.988 10.147 od 15 1.346 1.801 2.397 3.172 4.177 5.474 7138 9.266 15.974 Hod 16 1 373 1.873 2540 3.426 4.595 6.130 8.137 10.748 14.129 fod 17 1.400 1.948 2.693 3.700 5.054 6.860 9276 12.468 16.672 Hod 18 1.428 2026 2.854 3.996 5.560 7.690 10.575 14.463 19.673 Hod 19 1.457 2.107 3.026 4.316 6.116 8.613 12.056 16.777 23.214 Hod 20 1 486 2.191 3207 4.661 6.727 9846 13.743 19.461 27393 Hod 21 1.516 2279 3.400 5034 7.400 10.804 15668 22 574 32 324 Hod 22 1.546 2370 3.604 5.437 8.140 12.100 17 861 26.186 38.142 Hod 23 1,677 2465 3.820 5,871 8.954 13562 20 362 30.376 45.008 Hod 24 1.608 2563 4.049 6.341 9.850 15.179 23 212 35.236 63.109 Hod 25 1.641 2.666 4.292 6.848 10.835 17000 26.462 40874 62669 Hod 26 1.673 2.772 4.549 7396 11.918 19.040 30.167 47.414 73.949 EE 20% 1.200 1.440 1.728 2074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12830 15.407 18.488 22.186 26.623 31.948 38 338 46.005 55 205 66.247 79.497 95 396 114 475 22% 24% 1220 1 240 1.488 1538 1816 1.907 2215 2364 2.703 2932 3297 3.635 4023 4508 4.908 5.987 6.931 7.305 8.594 8.912 10.657 10.872 13.215 13.264 16 386 10.162 20.319 19.742 25.106 24.086 31 243 29.384 38.741 35,849 48.030 43.736 59.568 53.358 73.854 65.006 91.592 79.418 113 574 96 889 140.631 118.205 174.631 144 210 216.542 175.836 268 512 26% 1.260 1.588 2000 2.520 3.176 4.002 5.042 6.353 8.005 10.086 12.708 16.012 20.175 25.421 32.030 40.358 50.851 64.072 80.731 101.721 128.169 161.492 203.480 256,385 323.045 407.037 TA 28% 1.280 1.638 2.097 2684 3.436 4.398 5.629 7206 9.223 11.806 15.112 19.343 24.759 31.691 40,565 51.923 86.461 85.071 108.890 139 380 178.406 228 360 292 300 374.144 478.905 612 900 30% 1.300 1 690 2.197 2856 3.713 4.827 6.275 8.157 10.604 13.780 17922 23295 30288 39 374 51.186 66.542 86.504 112455 146.192 to oso 247.006 321.184 417.539 542 801 705.041 917 333 BAAR 32% 1320 1.742 2300 3.036 4007 5290 6.983 9217 12.166 16.060 21.190 27983 36 907 48.757 64 359 84.954 112.139 148.024 195.391 257,916 340.449 449.393 593.199 783 023 1033.500 1364 339 40% 1.400 1.960 2.744 3.842 5378 7.630 10.541 14.75 20.661 28.924 40:49 56.694 79.371 111.12 155.56 217.79 304.91 42687 597 63 83668 1171.35 1639 8 22958 3214.20 4499.86 8299 30 Print Done