Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chlp, the Patay2 chlp, 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 Potay2 is given as follows: TATAY CODOTTIMATE Development boat 320,000,000 Pilot testing $5,000,000 Debog $ 3,500,000 -up cost # 3.000.000 Advance marketing $4,000,000 Marketing and support coat + 1,000,000 per ye Unit production cost year 1 $ 655.00 thit production cost year 2 545.00 tinit price your 820.00 toit price year 2 650.00 Sales and production value year! 250,000 Sales and production volume year 2 150,000 Interest rate 10 PPT TENG Yux Y th YER Para Ondort Dabur Rampe Al Mare Marating and Support Production and 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.) Not present b. Perot's engineers have determined that spending $10 milion 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.) Nel present Value 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.) Not present value