$\backslash$table$[[$Project Schedule,Patay$2$ Chip Project Timing Year $1$ Year $2,$Year $3,$Year $4],[$Patay$2$ Chip,$\backslash$table$[[1$st$],[$half$]],2$nd half,$\backslash$table$[[1$st$],[$half$]],\backslash$table$[[2$nd$],[$half$]],1st$

half $,2$nd half, $1st$

half $,2$nd half$],[$Development$,,,,,,,,],[$Pilot testing,,,,,,,,$],[$Debug$,,,,,,,,],[$Ramp$-$up$,,,,,,,,],[$Advance marketing,,,,,,,,$],[$Marketing and support,,,,,,,,$],[$Production and sales,,,,,,,,$]]$

Assume all cash flows occur at the end of each period.

a$.$ What are the yearly cash flows and their present value $($discounted at $10$ percent$)$ of this project? What is the net present value? Note: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Negative value should be indicated by a minus sign.

Net present value

a$.$ What are the yearly cash flows and their present value $($discounted at $10$ percent$)$ of this project? What is the net present value? Note: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Negative value should be indicated by a minus sign.

Net present 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?

Note: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Negative value should be indicated by a minus sign.

Net present value

c$.$ If sales are only $228,000$ the first year and $114,000$ the second year, what would the NPV of the project be$?$ Assume the development 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 intermediate calculations. Negative value should be indicated by a minus sign.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. The relevant information for developing and selling the Patay$2$ is given as follows: