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Duna trip Inc. is evaluating the purchase of a new cruise ship. The ship would cost $44 million and would operate for 22 years. Duna
Duna trip Inc. is evaluating the purchase of a new cruise ship. The ship would cost $44 million and would operate for 22 years. Duna trip Inc. will sign a 22-year contract to rent the new cruise ship to another tourist company and receive a lease amount of $5 million at the beginning of each year.
If you know that cost of capital is 10 %, do you think that this is an attractive investment?
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