Facebook is considering to proposals to overhaul its network Infrastructure. They have received two bids The first bld from Huwel will requirea 524 million upfront investment and we generata $20 million in savings for Facebook each year for the next 3 years. The second bld from Cisco requires a $80 million upfront investment and will gererate 360 million in savings each year for the next 3 years, a. What is the IRR for Facebook angoclated with each bid? b. If the cost of capital for each investment is 12%, what is the net present value (NPV) for Facebook or wach bid? Suppose Cisco modifles Its bid by offering a lease contract instead. Under the terms of the case, Facebook will pay $27 million upfront and 535 million per year for the next 3 years Facebook's savings will be the same as with Cisco's original bid C. Including its savings, what are Facebook's nel cash flow under the lease contract? What is the IRR of the Cisco bid now? d. Is this new bid a better deal for Facebook than Cisco's original bid? Explain