Google has decided to evaluate new Server Farm designs to handle their expected future capacity demands with Virtual Reality and AI capacity of the future. They don't know what the future will bring, so they are analyzing 3 tiers of solutions: Option 1-Economy: This project will have an 5 year life, Initial cost of $45,000,000, support annual revenues of $13,000,000 and have a salvage residual value of $3,000,000 at the end of the project. Option 2 - Middle Tier: This project will have an 8 year life, Initial cost of $71,000,000, support annual revenue of $15,000,000 and have a salvage residual value of $5,000,000. Option 3 - Gold Star: This project will have a 12-year life, initial cost of $130,000,000, support annual revenues of $22,000,000 and have a salvage value of $8,000,000 at the end. Which Option should they select at their company MARR is 12.5%?

Which Project and Why ?

Please Show calculations on excel if any