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5.5 Adidas wl put on sale what bills as the world's first computerized smart shoe. But con sumers will decide whether to accept the bionic

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5.5 Adidas wl put on sale what bills as the world's first computerized "smart shoe." But con sumers will decide whether to accept the bionic run- ning shoe's $250 price tag-four times the average shoe price at stores such as Foot Locker. Adidas uses a sensor, a microprocessor, and a motorized cable system to automatically adjust the shoe's cushion ing. The sensor under the heel measures compression and decides whether the shoe is too soft or firm. That information is sent to the microprocessor, and while the shoe is in the air, the cable adjusts the heel cush ion. The whole system weighs less than 40 grams Adidas's computer-driven shoe-three years in the making-is the latest innovation in the S16.4 billion U.S. sneaker industry. The top-end running shoe from New Balance lists for $199.99. With runners typically replacing shoes every 500 miles, the $250 Adidas could push costs to 50 cents per mile. Adidas is spending an estimated $20 million on the rollout. The investment required to develop a full-scale com mercial rollout cost Adidas $70 million (including the $20 million ad campaign), which ll be financed at an interest rate of 10%. Wi Adidas will have about $100 net cash profit from each sale. The product will have a five-year market life. Assuming that the annual demand for the prod- uct remains constant over the market life, how many ith a price tag of $250

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