Madeline’s friends invited her to go to Cancun next year for vacation. She really wants to go, but she’s not sure if she can afford the $1,700 trip. She has $500 saved under her mattress and has one year to save the rest, but she’s not sure where to keep her money so she can maximize her savings. What is the best savings strategy for Madeline and why?

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.)