Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 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 Patay2 is given as follows: Development cost Pilot Testing Debug Ramp-up cost PATAY2 CHIP PRODUCT ESTIMATES $20,000,000 $ 5,000,000 $ 3,700,000 Advance marketing Marketing and support cost Unit production cost year 1 $ 3,000,000 $ 6,400,000 $1,000,000 per year $ 655.00 Unit production cost year 2 $ 545.00 Unit price year 1 $ 820.00 Unit price year 2 $ 650.00 Sales and production volume year 1 Sales and production volume year 2 250,000 150,000 Interest rate 10 PROJECT SCHEDULE PATAY CHIP Development Plot Testing Debug Ramp-up Advance Marketing Marketing and Support PATAY CHIP PROJECT TING YEAR! HALF 2ND HALF HALF HALF YEAR 2 2ND YEAR 3 YEAR 4 2ND HALF HALF IST HALF 2ND HALF Production and Sales Assume all cash flows occur at the end of each period. a. What is the net present value (at the discount rate of 10 %) of this project? (Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.)