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Consuela owns a catamaran that she purchased five years ago for $ 1 0 0 , 0 0 0 . When cruise ships visit her
Consuela owns a catamaran that she purchased five years ago for $ When cruise ships visit her city she does snorkeling trips for the tourists. The catamaran is being depreciated straightline over its year expected life and is currently worth $ It is expected to have no value at the end of its life in five years. She is considering moving to a larger boat that can accommodate more people. She has found a deal on a nice used boat for $ The new boat would be depreciated straightline over its five year life. Consuela expects that revenues would increase by $ per year, but she will have to hire more crew to work with the drunken tourists and use more fuel, so expenses will increase by an expected $ She expects that the new boat would actually be worth $ in five years. Consuela's marginal tax rate is and her required rate of return is What is the NPV of the project?
Consuela owns a catamaran that she purchased five years ago for $ When cruise ships visit her city she does snorkeling trips for the tourists. The catamaran is being depreciated straightline over its year expected life and is currently worth $ It is expected to have no value at the end of its life in five years. She is considering moving to a larger boat that can accommodate more people. She has found a deal on a nice used boat for $ The new boat would be depreciated straightline over its five year life. Consuela expects that revenues would increase by $ per year, but she will have to hire more crew to work with the drunken tourists and use more fuel, so expenses will increase by an expected $ She expects that the new boat would actually be worth $ in five years. Consuela's marginal tax rate is and her required rate of return is What is the NPV of the project?
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