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National Chips is a manufacturer of prototype chips based in Dublin, Ireland. Next year, in 2021, National Chips expects to deliver 575 prototype chips at an average price of $75,000. National Chips' marketing vice president forecasts growth of 85 prototype chips per year through 2027 . That is, demand will be 575 in 2021, 660 in 2022, 745 in 2023, and so on. (Click the icon to view additional information.) The following data on the two options are available: (Click the icon to view the data on the two options avallable and additional information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Calculate the cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 2027 period. First, determine the cash inflows and outflows of the "modernize" alternative over the 2021 to 2027 period. (Use a minus sign or parentheses for a cash outlows. If an input field is not used in the table, leave that input field empty, do not enter a zero.) More info The plant cannot produce more than 550 prototype chips annually. To meet future demand, National Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $4,600,000 if the plant is replaced. If the plant is modernized, the costs to modernize it are to be capitalized and depreciated over the useful life of the modernized plant. The old equipment is retained as part of the "modernize" alternative. National Chips uses straight-line depreciation, assuming zero terminal disposal value. For simplicity, we assume no change in prices or costs in future years. The investment will be made at the beginning of 2021, and all transactions thereafter occur on the last day of the year. National Chips' required rate of return is 10%. There is no difference between the "modernize" and "replace" alternatives in terms of required working capital. National Chips has a special waiver on income taxes until 2027. Requirements 1. Calculate the cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period. 2. Calculate payback period for the "modernize" and "replace" alternatives. 3. Calculate net present value of the "modernize" and "replace" alternatives. 4. What factors should National Chips consider in choosing between the alternatives