Evaluate the present value of the introduction of the chip

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Quick Computing currently sells 12 million computer chips each year at a price of $16 per chip.

It is about to introduce a new chip, and it forecasts annual sales of 25 million of these improved chips at a price of $20 each.

However, demand for the old chip will decrease, and sales of the old chip are expected to fall to 8 million per year.

The old chip costs $8 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 your answer in millions.)

Reference no: EM132067434

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