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Velux Pie currently selis a smartphone product the Malware 11. It is considering a persible...

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Velux Pie currently selis a smartphone product the Malware 11. It is considering a persible launch of a new version of this product the Malware 12. However this will result in an annual decrease in sales of their existing phone to the amount of 200,000 per year. The company has recently undertaken market research to assess the competition in the market. The research shows that a competin firm is going to launch a new phone in the near future. This will result in a decrease in sales of 200,000 in the Malware 11 each year What incremental cash flow effect should be included in the Malware 12 evaluation with regard to canalisation of Malware 1 sales There is a negative incremental cash flow effect of 400,000 per year There is a negative incremental cash flow effect of 200,000 per year There is an incremental cash flow effect, but further information on the sales margin is needed to work this out There is no incremental cash flow effect

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