years. The second bid from Cisco requires a $$97$ million upfront investment and will generate $$60$ million in savings each year for the next three years.

a$.$ What is the IRR for Facebook associated with each bid?

b$.$ If the cost of capital for each investment is $20\%,$ what is the net present value $($NPV$)$ for Facebook of each bid?

c$.$ Including its savings, what are Facebook's net cash flow under the lease contract? What is the IRR of the Cisco bid now?

d$.$ Is this new bid a better deal for Facebook than Cisco's original bid? Explain.

a$.$ What is the IRR for Facebook associated with each bid?

The IRR associated with the first bid from Huawei is $,\%.($Round to one decimal place.$)$

The IRR associated with the Cisco opportunity is $\%.($Round to one decimal place.$)$

b$.$ If the cost of capital for this investment is $20\%,$ what is the NPV of each bid?

The NPV for Huawei's bid is $$$ million. $($Round to two decimal places.$)$

The NPV for the Cisco opportunity is $ million. $($Round to two decimal places.$)$

Including its savings, what are Facebook's net cash flow under the lease contract? $($Round to the nearest integer.$)$

What is the IRR of the Cisco bid now?

The IRR of the Cisco bid is now $,\%.($Round to one decimal place.$)$

d$.$ Is this new bid a better deal for Facebook than Cisco's original bid? Explain. $($Select the best answer below.$)$