Perot 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:

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.$)$

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.$)$

Net present value $[$$

$(14,157,851)]$

b$.$ Perot's engineers have determined that spending $$10$ million more on development

will allow them to add even more advanced features. Having a more advanced chip will

allow them to price the chip $$50$ higher in both years $($ $$870$ for year $1$ and $$700$ for year

$.$ What is the NPV of the project if this option is implemented? $($Negative value should

be indicated by a minus sign. Enter your answer in thousands of dollars. Round your

answer to the nearest thousand.$)$

Net present value $,$$$(6,595,868)$

c$.$ If sales are only $200,000$ the first year and $100,000$ the second year, what would the

NPV of the project be$?$ Assume the development costs and sales price are as originally

thousands of dollars. Round your answer to the nearest thousand.$)$