Forecast Incremental Volumes & Profitability for all device Sales: 2021 2022 2023 2024 2025 Volume increase (units) 385,000 500,000 636,000 591,000 568,000 Average selling price/unit 260 240 220 220 220 100,100,000 120,000,000 | 139,920,000 130,020,000 | 124,960,000 40,000,000 50,000,000 | 62,000,000 | 57,000,000 Total revenues Variable production costs 55,000,000 Contribution 60,100,000 70,000,000 77,920,000 73,020,000 69,960,000 As % of total revenues 60% 58% 56% 56% 56% 46,000,000 | 50,000,000 50,000,000 | 48,000,000 Fixed production + sales costs Operating income 38,000,000 22,100,000| 24,000,000 | 27,920,000 23,020,000 | 21,960,000 As % of total revenues: 22% 20% 20% 18% 18% The fixed production and sales costs in the table (above) are allocations based on the costing system of ChipCo. It is not expected that ChipCo will need to increase its production or distribution capacity to meet incremental demand between 2021 and 2025. The data for selling prices and variable production costs are expected averages for ChipCo and its competitors in the region. Since ChipCo currently holds 70% of the logic device market globally, it is expected that this percentage will decline by roughly one percentage point per year for each year from 2021 to 2025. By investing in software developers, ChipCo unavoidably helps its competitors insofar as they too may gain in sales of logic devices. The cost of capital rate used by ChipCo is 10% per annum and the relevant discount factors are as follows: Table: Discount Factor at 10% per annum Years 10% Start 2021 End 2021 2022 2023 0.9091 0.8264 0.7513 2024 2025 0.6830 0.6209 REQUIRED: a. Compute the Net Present Value of the estimated direct returns from the minority equity investments And: