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.$)$

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 $2).$ 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.$)$

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 estimated. $($Negative value should be indicated by a minus

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