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Duna trip Inc. is evaluating the purchase of a new cruise ship. The ship would cost $20 million and would operate for 10 years. Duna

Duna trip Inc. is evaluating the purchase of a new cruise ship. The ship would cost $20 million and would operate for 10 years. Duna trip Inc. will sign a 10-year contract to rent the new cruise ship to another tourist company and receive a lease amount of $2 million at the beginning of each year.

If you know that cost of capital is 5 %, do you think that this is an attractive investment?

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