Intro Facebook runs many data warehouses full of servers. Assume that each existing server is 3 years old and was bought for $1,400. It could be sold for $560 now or for $280 in 2 years. The annual cost of running the server (for electricity, cooling and repairs) is $200. A new server costs $1,300 today and could be sold for $162.5 in 5 years. The annual cost of running it is $110. Both types of servers are usable for 5 years and are linearly depreciated to zero over 5 years. Facebook's marginal tax rate is 34% and the appropriate cost of capital for this project is 12%. Your task is to find out if Facebook should replace each server now or in two years. Part 1 Attempt 5/5 for 6 pts. What is the present value of all cash flows if a new server is bought once right now? 0+ decimals Submit Part 2 Attempt 3/5 for 8 pts. What is the present value of all cash flows if the old server is sold now, and the new server is bought now and then replaced every 5 years at the same terms? 0+ decimals Submit