Question: please help Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take

please help
please help Perot Corporation is developing a new
please help Perot Corporation is developing a new
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 marketife 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: PATAY CHOUETTE Development cost $20,000,000 Talot testing $5,000,000 Debug $2,600,000 Tamp-up cont 85,000,000 Advance marketing $4,200,000 Marketing and support cost 1.000.000 per year Unit production cont year . 655.00 Unit production cost year 0 545.00 Unit price year 1 $ $20.00 Unit price year 2 650.00 sales and production value year 1 250,000 Sales and production volone year 2 150,000 Interest rate 10 Pro PATARTING YARI YEAR 11 ALE MAL YA MAR NAVI Development Mit De AM Margot 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.) Netent value 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.) Net presente c. It 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.) Net present value

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