Comapny x generates revenue from subscriptions to our Connected Operations Cloud, which today includes Applications for Video-based Safety, Vehicle Telematics, Driver Apps and Workflows, Equipment Monitoring and Control, and Site Visibility. A subscription to our Connected Operations Cloud includes loT data collection, which comes from a Company X S IoT device, such as an Internet gateway, camera or sensor, or at times from a third-party solution; cellular connectivity for our loT devices; access to our cloud Applications, APIs and the Company X App Marketplace; and customer support. We price our subscriptions on a per asset, per application basis. For example, one vehicle using two Applications (video-based safety and vehicle telematics) would count as two subscriptions, and a five-building site with each building using two Applications (equipment monitoring and site visibility) would count as ten subscriptions. Company Xs subscriptions are typically sold with three or five year terms, with the customer paying monthly, annually or upfront. Hardware is included in the subscription price and shipped as part of the first purchase transaction. New hardware is not required upon renewal. Part 1. Transaction Evaluation Our sales team is working on a new active opportunity and has reached out to the deal desk for support. We have outlined the key economic inputs in the table below. Please analyze the transaction and provide your recommendation and rationale (short responses are sufficient). In your response, please address the following: Transaction overview Units Telematics List Price ($/month/unit) Discount Net Price (\$/month/unit) $$$4040%24.00$$ COGS Upfront (\$/unit) Recurring ( $ /month/unit) $100 $4 36 $150 $5.50 $50 Term (months) 36 36 Cost of Sale (Sales Commission) % of ACV New Customer Renewal 30% 5% Customer early termination (\$) $300,000 Calculate TCV, ACV, gross margin, cash flow and payback period. The customer has an existing solution under contract with a competitor, which requires a $300K early termination fee. Is this something we can fund? If so, how would you structure (price discount, rebate, other?) How does this affect the economic metrics above