Microsoft Corporation is planning to build a new data center. The cost of construction is estimated at $3 billion. The data center will generate additional revenues of $700 million per year, with annual operating costs of $100 million, for 12 years. The discount rate is 10%.

• Requirements:
  • Calculate the Net Present Value (NPV) of the data center project.
  • Determine the Payback Period.
  • Calculate the Accounting Rate of Return (ARR).
  • Evaluate the overall financial viability of the project.