Proper Cash Flows.   Quick Computing currently sells 10 million computer chips   
     each year at a price of $20 per chip.  It is about to introduce a
new chip, and it
     forecasts annual sales of 12 million of these improved chips at a
price of $25 each.
     However, demand for the old chip will decrease, and sales of the
old chip are
     expected to fall to 3 million per year.  The old chip costs $6
each to manufacture,
     and the new ones will cost $8 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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Clarification of Question by sumi15-ga on 24 Nov 2004 12:10 PST

I want livioflores-ga to answer my question. This one is urgent.