Answered step by step
Verified Expert Solution
Question
1 Approved Answer
eBook Net Present Value Method for a Service Company Opulence Corporation has recently placed into service some of the front cruise ships in the world.
eBook Net Present Value Method for a Service Company Opulence Corporation has recently placed into service some of the front cruise ships in the world. One of these ships, the Belwether, can hold up to 3,000 passengers and can cost $600 million to build. Assume the following additional information: There will be 300 cruise days per year operated at a full capacity of 3,000 passengers The variable expenses per passenger are estimated to be 575 per cruise day. The revenue per passenger is expected to be $375 per cruise day The fixed expenses for running the ship, other than depreciation, are estimated to be $70,200,000 per year. The ship has a service life of 10 years, with a residual value of $100,000,000 at the end of 10 years. Present Value of $1 at Compound Interest Year 6% 10% 129 15% 2096 1 0.943 0.909 0.893 0.870 2 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.656 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.205 0.564 0.507 0.432 0.135 7 0.665 0.513 0.452 0.376 0.279 B 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.286 0.194 10 0.556 0,386 0.322 0.247 0.162 0.890 Present Value of an Annuity of $1 at Compound Interest Previous Next Sud Aseri Grading eBook 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 2 1.833 1.736 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 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started