NEED ANSWER ASAP PLEASE!

Facebook is considering two proposals to overhaul its network infrastructure. They have received two bids. The first bid from Huawei will require a $15 million upfront investment and will generate $20 million in savings for Facebook each year for the next 3 years. The second bid from Cisco requires a $100 million upfront investment and will generate $60 million in savings each year for the next 3 years.

a. What is the IRR

for Facebook associated with eachbid?

b. If the cost of capital for each investment is 16%, what is the net present value (NPV) for Facebook of eachbid?Suppose Cisco modifies its bid by offering a lease contract instead. Under the terms of the lease, Facebook will pay $28 millionupfront, and $35 million per year for the next 3 years.Facebook's savings will be the same as withCisco's original bid.

c. Including itssavings, what areFacebook's net cash flow under the leasecontract? What is the IRR of the Cisco bidnow?

d. Is this new bid a better deal for Facebook thanCisco's originalbid? Explain.

e. The IRR associated with the first

bid from Huawei is what %?(Round to one decimalplace.)