Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay$2$ chip, willtake two years to develop. However, because other chip manufacturers will be able to copy the technology, it will have amarket life of two years after it is introduced. Perot expects to be able to price the chip higher in the first year, and itanticipates a significant production cost reduction after r the first year. The relevant information for developing and sellingthe Patay$2$ is given as follows:Development costPilot testingBDebugRamp$-$up costAdvance marketingMarketing and support costUnit production cost year $1$Unit production cost year $2$Unit price year $1$Unit price year $2$Sales and production volume year $1$Sales and production volume year $2$Interest rateProject SchedulePatay$2$ ChipDevelopmentPilot testingDebugRamp$-$upAdvance marketingMarketing and supportProduction and salesPATAY$2$ CHIP PRODUCT ESTIMATESvalue?Net present valueYear $11$sthalfNet present valueAssume all cash flows occur at the end of each period$$26,000,000$$$6,500,000$$$3,900,000$$$3,900,0002$ndhalfNet presenit value$$6,500,000$$$1\mathrm{.}300,000$ per year$$655\mathrm{.}0$e$1$sthalf$$545\mathrm{.}00$$$820\mathrm{.}00$Patay$2$ Chip Project Timing$$650\mathrm{.}0$e$280,00180,00010\%$Year $22$ndhalfYear $31$sthalf$2$ndhalfa. What are the yearly cash flows and their present value $($discounted at $10$ percent$)$ of this project? What is the net presentYear $41$sthalfNote: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediatecalculetions. Negative value should be indicated by a minus sign$\mathrm{.}2$ndhalfb. Perot's engineers have determined that spending $$10$ million more on development will allow them to add even moreadvanced features. Having a more advanced chip will allow them to price the chip $$50$ higher in both years $($$$870$ foryear $1$ and $$700$ for year $2).$ What is the NPV of the project if this option is implemented?Note: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediatecalculations. Negative value should be indicated bya minus sign.c$.$ If sales are only $260,000$ the first year and $130,000$ the second year, what would the NPV of the project be$?$ Assume thedevelopment costs and sales price are as originally estimated.Note: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediatecalculations. Negative value should be indicated by a minus sign.