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Quick Computing currently sells 21 million computer chips each year at a price of $27 per chip. It is about to introduce a new chip, and it forecasts annual sales of 21 million of these improved chips at a price of $34 each. However, demand for the old chip will decrease, and sales of the old chip are expected to fall to 7 million per year. The old chips cost $12 each to manufacture, and the new ones will cost $15 each. What is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (Enter your answer in millions.)

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Financial Management, Finance

Category:- Financial Management
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