The following data on the two options are available: (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 Read the requirements. More info Future Value of Annuity of $1 table The plant cannot produce more than 495 prototype chips annually. To meet future demand, Irish 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 modernized plant. The old equipment is retained as part of the "modernize" alternative. Requirement 1. Calculate the cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period. 1. Calculate the cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period. 2. Calculate payback period for the "modernize" and "replace" alternatives. 3. Calculate net present value of the "modernize" and "replace" alternatives. 4. What factors should Irish Chips consider in choosing between the alternatives? Data table assume no change in prices or costs in future years. The investment will be made at the beginning of 2021, and all transactions thereafter occur on the last day of the year. Irish Chips' required rate of return is 16%. There is no difference between the "modernize" and "replace" alternatives in terms of required working capital. Irish Chips has a special waiver on income taxes until 2027