• Alphabet is planning to invest in a new data center with the following expected financials:
  • Initial Investment: $2 billion
  • Estimated Annual Revenue: $700 million
  • Operating Costs: $450 million annually
  • Depreciation Expense: $100 million annually
  • Tax Rate: 21%

• Requirements:
  1. Calculate the annual net income from the new data center.
  2. Prepare a financial projection for the new data center over five years.
  3. Analyze the impact of the new data center on Alphabet’s operating profit margin.
  4. Discuss the strategic importance of the new data center for Alphabet’s cloud services.
  5. Evaluate the potential risks and cybersecurity concerns associated with the new data center.