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 10 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 5 million per year. The old chips cost $10 each to manufacture, and the new ones will also cost $10 each. What is the incremental cash flow of the new chip?

Multiple Choice

• 200 million

• 250 million

• 100 million

• 150 million