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that is all the information I have Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip,
that is all the information I have Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay 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 Patay is given as follows: Assume all cash flows occur at the end of each period. a What is the net present value at the discount rate of of this project? Negative value should be indicated by a minus sign.
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