Achange in the estimated useful life of equipment requires
a. a retroactive change in the amount of periodic depreciation recognized in
previous years.
b. that no change be made in the periodic depreciation so that depreciation
amounts are comparable over the life of the asset.
c. that the amount of periodic depreciation be changed in the current year and
in future years.
d. that income for the current year be increased.

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 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.)