Question: Perot Corporation is developing a new CPU ch Its new chip, the Patay2 chip, will take t wo chip manufacturers be able to copy the

 Perot Corporation is developing a new CPU ch Its new chip,

the Patay2 chip, will take t wo chip manufacturers be able to

Perot Corporation is developing a new CPU ch Its new chip, the Patay2 chip, will take t wo chip manufacturers be able to copy the two years after it is introduced. Perot exp the first year and it anticipates a signifi year as well . The relevant information for follows : PATAY2 CHIP PRODUCT ESTIMATES Development cost $20 , 000 , 000 Pilot testing $5 , 000 , 000 Debug $2 , 400 , 000 Ramp - up cost $3 , 000 , 000 Advance marketing $3 , 800 , 000 Marketing and support $do90 0 , per0 year Unit production cost $665 . 00 Unit production cost $ 545 . 10 Unit price year $820 . 00 Unit price year 2 $ 650 . 00 Sales and production v25 @,me0 gear N - Sales and production v by @ ,me0 g ear Interest rate 10 % Assume all cash flows occur at the end of e a. What is the net present value ( at the disc p roj (Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.) b. Perot's engineers have determined that spen development will allow them to add even more advanced chip will allow them to price the year 1 and $700 for year 2 ) What is the NPV i mp l e me( Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.) cIf sales are only 200, 000 the first year a the NPV of the project be? Assume the devel original I yNegative valueesbould be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.)

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