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please help me out a. What is the net present value (at the discount rate of 10%%) of this project? (Negative value should be Indicated

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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.) Net present value b. Perot's engineers have determined that spending $10 million more on development will allow them to add even more advanced features. Having a more advanced chip will allow them to price the chip $50 higher In both years ($870 for year 1 and $700 for year 2). What Is the NPV of the project if this option is Implemented? (Negative value should be Indicated by a minus sign. Enter your answer In thousands of dollars. Round your answer to the nearest thousand.) Net present value c. If sales are only 200,000 the first year and 100,000 the second year, what would the NPV of the project be? Assume the development costs and sales price are as originally estimated. (Negative value should be Indicated by a minus sign. Enter your answer In thousands of dollars. Round your answer to the nearest thousand.) Net present valuePerot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two years to develop. However, because other chip manufacturers will be able to copy the technology, It will have a market life of two years after 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, 090, 090 Pilot testing to to to 5,090, Gee Debug 2,409, 090 Ramp-up cost 3,090, 090 Advance marketing 3,800, 090 Marketing and support cost $ 1, 090,wee per year Unit production cost year 1 $ 655.08 Unit production cost year 2 545.90 Unit price year 1 820. 08 Unit price year 2 650.90 Sales and production volume year 1 250,090 Sales and production volume year 2 150, 080 Interest rate PATAY2 CHIP PROJECT TIMING PROJECT SCHEDULE YEAR 1 YEAR 2 YEAR 3 YEAR 4 1ST 2ND IST 2ND IST 2ND 1ST 2ND PATAYE 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

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