uick computing currently sells 19 million computer chips each year at a price of $23 per chip. It is about to introduce a new chip, and it forecasts annual sales of 13 million of these improved chips at a price of $36 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 chips cost $14 each to manufacture, and the new ones will cost $17 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

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.