Question: please help ASAP! having a really hard time with NPV Perot Corporation is developing a new CPU chip based on a new type of technology.

please help ASAP! having a really hard time with NPV
please help ASAP! having a really hard time with
please help ASAP! having a really hard time with
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: PATAY2 CREP PRODUCT ESTIMATES Development cont $ 20,000,000 Pilot testing $5,000,000 Debug $ 3,000,000 Ramp-up cost $3,000,000 Advance marketing $5,000,000 Marketing and support cost $ 1,000,000 per year Unit production coat year 1 $ 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 1 250,000 sales and production volone year 2 150,000 Interest rate K ces 10 PATAY2 C Prorect TIVNO YLARI YEAR YAR YEAR Tv RD liv HIT 2ND AUF HAUSHALY HALF HALI HALI HALF honets PATAY Development Metasting Debu Harpe Adi Multing Mwleting and Support 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? (Enter your answer in thousands of dollars. Round your 8 a. What is the net present value (at the discount rate of 10%) of this project? (Enter your answer in thousands of dollars. Round your answer to the nearest thousand.) Net present value is Skipped Boot Print nferences 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? (Enter your answer in thousands of dollars. Round your answer to the nearest thousand.) Net 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. (Enter your answer in thousands of dollars, Round your answer to the nearest thousand.) Net present value

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