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Quick Computing currently sells 1 4 million computer chips each year at a price of $ 1 7 per chip. It is about to introduce
Quick Computing currently sells million computer chips each year at a price of $ per chip. It is about to introduce a new chip, and it forecasts annual sales of million of these improved chips at a price of $ each. However, demand for the old chip will decrease, and sales of the old chip are expected to fall to million per year. The old chips cost $ each to manufacture, and the new ones will cost $ 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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