Question
Quick computing currently sells 14 million computer chips each year at a price of $17 per chip. It is about to introduce a new chip,
Quick computing currently sells 14 million computer chips each year at a price of $17 per chip. It is about to introduce a new chip, and it forecasts annual sales of 24 million of these improved chips at a price of $21 each. However, demand for the old chips will decrease, and sales of the old chip are expected to fall to 6 million per year. The old chips cost $9 each to manufacture, and the new ones will cost $12 each. What is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (Enter answer in millions.)
Cash flow = ___??____ million.
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