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find all parts OpenSeas, inc. is evaluating the purchase of a new cruise ship. The ship wil cost 5495 millon, and wit operase for 20
find all parts
OpenSeas, inc. is evaluating the purchase of a new cruise ship. The ship wil cost 5495 millon, and wit operase for 20 yesss. Oponstas expect arnual cash fown fom openting me shp at be 568.2 million and its cott of capital is 11.8%. a. Prepare an NPV profie of the purchase. b. identify the IRR on the graph. c, Should Openseas proceed with the parchase? d. How far off could OpenSeas' cost of capital estimate be betore your purchase decison would change? a. Prepare an NPV pedile of the purchare. To plot the NPV profle we oompule the NPV of the project for vanous dicount fales and plot the curre: The NPN for a discount rate of 20% is 5 million. (Aound to one decimal ptage) Step by Step Solution
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