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Expert Chips is a manufacturer of prototype chips based in Dublin, Ireland. Next year, in 2018, Expert Chips expects to deliver 605 prototype chips at an average price of $65,000. Expert Chips' marketing vice president forecasts growth of 45 prototype chips per year through 2024. That is, demand will be 605 in 2018, 650 in 2019, 695 in 2020, and so on. i (Click the icon to view additional information.) (Click the icon to view the data on the two options available and additional information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Calculate the cash inflows and outflows of the modernize and replace alternatives over the 2018 - 2024 period. First, determine the cash inflows and outflows of the modernize alternative over the 2018 to 2024 period. (Use a minus sign or parentheses for a cash outflows. If a box is not used in the table, leave that box empty, do not enter a zero.) Units Net cash Initial Proceeds from Year sold contributions investments sale of equipment Jan 1, 2018 Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Enter any number in the edit fields and then click Check Answer. ?Expert Chips is a manufacturer of prototype chips based in Dublin, Ireland. Next year, in 2018, Expert Chips expects to deliver 605 prototype chips at an average price of $65,000. Expert Chips' marketing vice president forecasts growth of 45 prototype chips per year through 2024. That is, demand will be 605 in 2018, 650 in 2019, 695 in 2020, and so on. 0 (Click the icon to view additional information.) a (Click the icon to view the data on the two options available and additional information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 ta Read the @uirements. 0 Data Table - Requirement 1. Calculate the cash inows and outows of the modernize and replace :1 First, determine the cash inows and outows of the modernize alternative over the 201 : Modernize Replace Initial investment in 2018 $ 36,100,000 $ 66,100,000 0 More Info - X Terminal disposal value in 2024 $ 6,200,000 $ 15,000,000 Useful life 7 years 7 years Total annual cash operating cost per prototype chip $ 50,000 $ 40,000 The plant cannot produce more than 580 prototype chips annually. To meet future demand, Expert 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: Expert Chips uses straightline 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 thereaer occur on the last day of the year. Expert Chips' required rate of return is 20%. There is no difference between the modernize and replace alternatives Print H 9"? l