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02-11-2022
Business

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quick computing currently sells 12 million computer chips each year at a price of $21 per chip. it is about to introduce a new chip, and it forecasts annual sales of 14 million of these improved chips at a price of $26 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 4 million per year. the old chips cost $6 each to manufacture, and the new ones will cost $9 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip?

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