Need help with this project.

Thanks

Instructions: The assignment is based on the case below. The instructions relating to the assignment are at the end of the case. Dan and Susan are facing an important decision. After having discussed different financial and scenarios, the two computer engineers felt it was time to finalize their cash flow projections move to the next stage-decide which of two possible projects they should undertake. Both had a bachelor degree in engineering and had put in several years as maintenance engineers in a large chip manufacturing company. About six months ago, they were able to exercise their first stock options. That was when they decided to quit their safe, steady job and pursue their dreams of starting a venture of their own. In their spare time, almost as a hobby, they had been collaborating on some research into a new chip that could speed up certain specialized tasks by as much as 25%. At this point, the design of the chip was complete. While further experimentation might improve the performance of their design, any delay in entering the market to be costly, as one of the established players might introduce a similar product now may prove act if at all. their own. The duo knew that now was the time to They estimated that they would need to spend about s1,000,000 on plant, equipment and for future cash flows, they felt that the right strategy at least for the first year would be to sell their product at dirt-cheap prices in order to induce customer acceptance. Then, once the product established a name for itself the price could be raised. By the end of the fifth year, their product current form was likely to be obsolete. However, the innovative approach that they had devised and patented could be sold to a larger chip manufacturer for a decent sum. Accordingly, the two budding entrepreneurs estimated the cash flows for this project (call it Project A) as follows Year Project A Expected Cash flows (S) 1,000,000 50.000 200,000 600,000 500,000 n alternative to pursuing this project would be to immediately sell the patent for their innovative chip design to one of the established chip makers. They estimated that they would receive around $200,000 for It would probably not be reasonable to expect much more as neither their product nor their innovative approach had a track record. They could then invest in some plant and equipment that would test silicon wafers zircon nt before the wafers were used to make chips. Too much for long-term performance zircon would affect of the chips. The task of checking the level of zircon was currently being performed