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Bullets Format: Microsoft Corporation is analyzing its investment options for expanding its cloud computing services. The company is considering two options: Option A: Invest

  1. Bullets Format: Microsoft Corporation is analyzing its investment options for expanding its cloud computing services. The company is considering two options:
  • Option A: Invest $100 million in building a new data center.
  • Option B: Partner with an existing data center provider and pay an annual fee of $20 million for ten years.

Calculate the net present value (NPV) for each option using a discount rate of 8%.

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