2-16 Present values and opportunity cost of capital Halcyon Lines is considering the purchase of a new bulk carrier for $6.6 million. The forecasted revenues are $7.0 million a year and operating costs are $6.0 million. A major refit costing $4.0 million will be required after both the fifth and tenth years. After 15 years, the ship is expected to be sold for scrap at $3.5 million. a. What is the NPV if the opportunity cost of capital is 10%? (Enter your answer in dollars, not millions of dollars. Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Net present value $ b. Halcyon could finance the ship by borrowing the entire investment at an interest rate of 4.5%. Will this borrowing opportunity affect your calculation of NPV? Yes O No