Please DO NOT answer this problem if you dont know what youre doing! This is the second time im having to ask this question and I dont want to waste any more of my free questions. The first person just copy and pasted an incomplete/wrong answer from some other site. I will downvote and report any expert doing this. Please show all steps of YOUR WORK in an easy to understand way. Thank you so much in advance to whoever answers this. I will upvote and commend whoever completes this question correctly.

21-34 Equipment replacement, no income taxes. Dublin Chips is a manufacturer of prototype chips based in Dublin, Ireland. Next year, in 2018, Dublin Chips expects to deliver 615 prototype chips at an aver- age price of $95,000. Dublin Chips' marketing vice president forecasts growth of 65 prototype chips per year through 2024. That is, demand will be 615 in 2018, 680 in 2019, 745 in 2020, and so on. The plant cannot produce more than 585 prototype chips annuaily. To meet future demand, Dublin Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $4,200,000 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 mod- ernize alternative. The following data on the two options are available: Modernize Replace Initial investment in 2018 Terminal disposal value in 2024 Useful life Total annual cash operating costs per prototype chip $35,300,000 $66,300,000 7,500,000 $%16,000,000 7 years $66,000 7 years $78,500 Dublin Chips uses straight-line depreciation, assuming zero terminal disposal value. For simplicity, we as- sume 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 ot the year. Dublin Chips' required rate of return is 14%. There is no difference between the modernize and replace alternatives in terms of required working capital. Dublin Chips has a special waiver on income taxes until 2024 1. Sketch the cash inflows and outflows of the modernize and replace alternatives over the 2018-2024 2. 3. 4. period. Calculate the payback period for the modernize and replace alternatives. Calculate net present value of the modernize and replace alternatives. What factors should Dublin Chips consider in choosing between the alternatives