Facebock is considering two proposals to overhaul its network infrastructure. They have received two bids. The first bid from Huawei will require a $18 million upfront nvestment and will generate $20 million in savings each and wil ger wrale m g foaaook ech year for he next 3 years. The second bid from C5in uofron nrestrmenen $60 million in savings each year for the next 3 years nvestment a. What is the IRR for Facebook associated with each bid? b. W cost of capital for each investment is 10%, what is the net present value (NPV) for Facebook of nach bid? Suppose Cisco modifies its bid by offering a lease contract instead. Under the terms of the lease, Facebook will pay $29 million upfront, and $35 the next 3 years. Facebook's inchid ng its sa ngs what are Facebook's net cash flow under the lease contract? What is the RR of the Cinco bid now? d. Is this new bld a beter deal for Facebook than Cisco's original bid? Explain. savings will be the same as with Cisoo's original bid. llion per year fr a, what is the IRR for Facebook associated with each bid? The RR assocated with the first bid from Huawei is-1% (Round to one decimal place )