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a . Prepare an NPV profile of the purchase. b . Identify the IRR on the graph. c . Should OpenSeas go ahead with the
a Prepare an NPV profile of the purchase.
b Identify the IRR on the graph.
c Should OpenSeas go ahead with the purchase?
d How far off could OpenSeas's cost of capital estimate be before your purchase decision would change?
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 is $
The NPV for a discount rate of is $
The NPV for a discount rate of is $
The NPV profile is:
million. Round to one decimal place.
million. Round to one decimal place.
million. Round to one decimal place.
b Identify the IRR on the graph.
The approximate IRR from the graph is
Round your answer to one decimal place.
c Should OpenSeas go ahead with the purchase? Select the best choice below.
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