Carnival Corporation has recently placed into service some of the largest cruise ships in the world. One of these ships can hold up to 3,600 passengers and cost $750 milion to build. Assumes the following additional information: There will be 300 cruise days per year operated at a full capacity of 3,600 passengers The variable expenses per passenger are estimated to be $90 per onuise day The revenue per passenger is expected to be $450 per cruise day The foced expenses for running the ship, ofther than depreciation, are estimated to be $100,000,000 per year The ship has a service ife of 10 years, with a residual value of $120,000,000 at the end of 10 years Present Value of $1 at Compound Interest 15% 20% Year 6% 10% 12% 0.870 0.833 0.909 0.893 1 0.943 0.797 0.756 0.694 0.826 2 0.890 0.579 0.751 0.712 0.658 0.840 3 0.482 0.572 0.683 0.636 0.792 4 0.567 0.497 0.402 0.747 0.621 0.432 0.335 0.564 0.507 6 0.705 0.452 0.376 0.279 7 0.665 0.513 0.327 0.233 0.404 0.627 0.467 0.361 0.194 0.284 0.592 0.424 0322 0.162 0.247 0.386 0.558 10 BASSghmentMain.dotinvoker-assignments&takeAssignmentSessionlLocator-assignment-take&inprogress false 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.736 1.833 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 5.582 7 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 4.772 4.031 6.802 5.759 5.328 5.650 4.192 7.360 6.145 5.019 10 a. Determine the annual net cash flows from operating the cruise ship. Enter all amounts as positive numbers. 4,039.200X a. Determine the annual net cash flows from operating the cruise ship. Enter all amounts as positive numbers Revenues 4,039,200 x Less: Variable expenses 1,663,200 X Foxed expenses Annual net cash flows b. Determine the net present value of this investment, assuming a 12 % minimum rate of return. Use the present value tables above. Present value of annual net cash flows Present value of residual value Total present value 935,520,000 x Initial investment Net present value