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On December 2019, Amazon corp. is launching a new cloud server to meet the increasing demand for cloud computing. Starting from next January, this new
On December 2019, Amazon corp. is launching a new cloud server to meet the increasing demand for cloud computing. Starting from next January, this new server will generate $1M revenue per month forever, except on Februarys. Every February, the server needs to be shut down (no revenue) and serviced. The maintenance cost is $ 2M each time on every February. The discount rate is 1% per month. How much value does this new server add to Amazon corp. (as of December 2019)?
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