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Evaluate the financial impact of a new data center at Facebook using NPV, IRR, and payback period methods. Calculate the NPV and IRR based on

Evaluate the financial impact of a new data center at Facebook using NPV, IRR, and payback period methods.

Calculate the NPV and IRR based on projected cash flows and discount rate.

Determine the payback period for the investment.

Conduct a sensitivity analysis to see how changes in usage rates impact profitability.

Provide recommendations on whether to proceed with the data center project.

Investment Components

Initial Investment ($)

Annual Cash Flows ($)

Project Life (years)

Discount Rate (%)

Data Center

$300,000,000

$70,000,000

6

8%

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