Microsoft is analyzing the costs of acquiring a cloud computing startup. The acquisition cost is $10 billion,
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Question:
Microsoft is analyzing the costs of acquiring a cloud computing startup. The acquisition cost is $10 billion, including integration and marketing costs of $2 billion. The startup is expected to contribute $1 billion annually in cloud service revenue.
Requirements:
- Create a table summarizing the acquisition costs and revenue projections.
- Calculate the total acquisition, integration, and marketing costs.
- Determine the net present value (NPV) and internal rate of return (IRR) for the acquisition.
- Analyze the strategic fit of the startup in Microsoft's cloud services portfolio.
- Evaluate the financial impact of the acquisition on Microsoft's cash flow.
- Recommend integration strategies and synergies to maximize ROI.
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