10. OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $498 million, and will operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $68.9 million and its cost of capital is 11.7%. a. Prepare an NPV profile of the purchase. To plot the NPV profile we compute the NPV of the project for various discount rates and plot the curve. The NPV for a discount rate of 2.0% is $ million. (Round to nearest $1.) The NPV for a discount rate of 6.0% is $ million. (Round to nearest $1.) The NPV for a discount rate of 12% is $ million. (Round to nearest $1.) The NPV for a discount rate of 14% is $ million. (Round to nearest $1.) The NPV profile is: NPV Profile of the Cruise Ship Investment $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 6 $100 1 2 3 4 5 8 9 10 11 12 13 14 15 16 17 18 19 20% -$200 b. Identify the IRR on the graph