Facebook is considering two proposals to overhaul its network infrastructure. The firm has received two bids. The first bid from Huawei will require a $17 million upfront investment and will generate $20 million in savings for Facebook at the end of each year for the next 3 years. The second bid from Cisco requires a $84 million upfront investment and will generate $60 million in savings at the end of each year for the next 3 years.a. What is the internal rate of return [IRR] for Facebook associated with each bid?b. If the cost of capital (also appropriately called required return) for each investment is 12%, calculate the net present value (NPV) for Facebook of each bid. The larger-scale opportunity proposed by Cisco required an additional upfront investment of $67 million. However, it also is expected to generate extra end-of-year savings of $40 million for the next 3 years. In other words, an incremental upfront outlay of $67 million is expected to generate an incremental $40 million at the end of each year for the next 3 years. Calculate the IRR for this stream of incremental cash flows. Note: The approach here is exactly the same as you used for the two IRRs in part a.

a. What is the internal rate of return [IRR] for Facebook associated with each bid? The IRR associated with the first bid from Huawei is enter your response here%. (Round to one decimal place.) The IRR associated with the Cisco opportunity is enter your response here%. (Round to one decimal place.) b. If the cost of capital (also appropriately called required return) for this investment is 12%, what is the NPV of each bid? The NPV for Huawei's bid is $enter your response here million. (Round to two decimal places) The NPV for the Cisco opportunity is$enter your response here million. (Round to two decimal places) c. The larger-scale opportunity proposed by Cisco required an additional upfront investment of $67 million. However, it also is expected to generate extra end-of-year savings of $40 million for the next 3 years. In other words, an incremental upfront outlay of $67 million is expected to generate an incremental $40 million at the end of each year for the next 3 years. Calculate the IRR for this stream of incremental cash flows. Note: The approach here is exactly the same as you used for the two IRRs in part a.Answer: enter your response here%. (Round to one decimal place.)