Evaluate the present value of the introduction of new chip

Reference no: EM13279899

A computer chip manufacturer is selling 10 million chips per year priced at $10 each. It is about to introduce a new chip that will be priced at $15 each and it expects to sell 16 million. However, demand for the old chips will fall and sales of the old chips are expected to fall to 5 million per year. The old chip costs $7.50 each to manufacture and the new ones will cost $9 each. What is the correct cash flow to use to evaluate the present value of the introduction of the new chip? Show all work for full rating.

Reference no: EM13279899

Questions Cloud

Find the force exerted by the horizontal rope on her arms : A 55.3-kg ice skater is moving at 4.00 m/s when she grabs the loose end of a rope, Determine the force exerted by the horizontal rope on her arms

What was the cash flow from the project : The only capital investment required for a small project is investment in inventory. Profits this year were 21,000 and inventory increased from $8,500 to $9,200. What was the cash flow from the project?

How long must the coil be to have an inductance : The coil area is 2.7 mm*mm, the number of turns is 187; it also has an iron core with permeability mu= 600. How long must the coil be to have an inductance of 8.3 mH

Predict future dangerousness in this matter : Some of the detainees still being held at the U.S. naval base at Guantanamo Bay, Cuba, have yet to commit a terrorist offense. Homeland security officials are worried, however, that they may do so in the future. What are the pros and cons of trying t..

Evaluate the present value of the introduction of new chip : What is the correct cash flow to use to evaluate the present value of the introduction of the new chip? Show all work for full rating.

Define the structures of the e and z stereoisomer : Therefore, a more systematic manner of indicating stereochemistry in these systems has been developed that uses the E and Z nomenclature system. Draw the structures of the E and Z stereoisomers of 1,4-diphenyl-2-butene-1,4-dione. In this case, whi..

Find the steady-state current ic through the capacitor : A voltage v(t) = 24cos(2000t-45°)V is applied across a parallel connection of a 5-kΩ resistor and a 100-nF capacitor. Find the steady-state current i_c(t) through the capacitor and the steady-state current i_R(t) through the resistor.

Find the magnitude of the acceleration of the box : Two forces are acting on a 9.5 kg box on a frictionless surface. Force A has a magnitude of 44 N, Find the magnitude of the acceleration of the box

What is the standard deviation of the returns on a portfolio : Suppose all stocks had a standard deviation of 30% and a correlation with each other of .4. What is the standard deviation of the returns on a portfolio that has equal holdings in 50 stocks?

User Account

All Pages