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)?

Provide all the steps and formulas used. It is a long answer questions must show all steps. 

Answer rating: 100% (QA)

To calculate the value of the new cloud server that Amazon is launching we need to determine the pre... View the full answer