erot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay$2$ 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$2$ is given as follows:

PATAY$2$ CHIP PRODUCT ESTIMATES

Development cost $ $20,000,000$

Pilot testing $ $5,000,000$

Debug $ $2,000,000$

Ramp$-$up cost $ $3,000,000$

Advance marketing $ $3,000,000$

Marketing and support cost $ $1,000,000$ per year

Unit production cost year $1$ $ $655\mathrm{.}00$

Unit production cost year $2$ $ $545\mathrm{.}00$

Unit price year $1$ $ $820\mathrm{.}00$

Unit price year $2$ $ $650\mathrm{.}00$

Sales and production volume year