Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two year to develop. However, because other chip manufacturers will be able to copy the technology, it will have a market life of two years af it is introduced. Perot expects to be able to price the chip higher in the first year, and it anticipates a significant production cost reduction after the first year as well. The relevant information for developing and selling the Patay2 is given as follows: PATAY2 CHIP PRODUCT ESTIMATES Development cost $ 20, 000, 000 Pilot testing $ 5, 000, 000 Debug 3, 600, 000 Ramp-up cost $ 3,000, 000 Advance marketing $ 6, 200, 000 Marketing and support cost $ 1, 000, 000 per year Unit production cost year 1 655. 00 Unit production cost year 2 545. 00 Unit price year 1 820. 00 Unit price year 2 650.00 Sales and production volume year 1 250, 000 Sales and production volume year 2 150, 000 Interest rate 10 % PATAY2 CHIP PROJECT TIMING PROJECT SCHEDULE YEAR 1 YEAR 2 YEAR 3 YEAR 4 15 2ND 2ND 1ST 2ND IST 2ND PATAY2 CHIP HALF HALF HALF HALF HALF HALF HALF HALF Development Pilot Testing Debug Ramp-up Advance Marketing Marketing and Support Production and Sales Assume all cash flows occur at the end of each period. a. What is the net present value (at the discount rate of 10%) of this project? (Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.)