Homework: Homework 37 Capital Budgeting Sme Score: 0 of 1 pt 1 of 1 complete HW Score: 0%, 0 of 1 pt P 8-11 (similar to) Question 0 Open Sea Inc. is luating the purchase of a new cruise ship. The sp Wilcout S407 milion, and will operate for 20 years. OpenSess expects and cash flows from operating the ship to be 56.1 million and cost of capitalis 11.95 2. Prepare an NPV pro of the purchase b. Identify the IRR on the graph Should Open Seas proceed with the purchase? 4. How far off could Open Seas cost of capital estimato be before your purchase decision would change? a. Prepare NPV profile of the purchase To plot the NPV profile we compute the NPV of the project for various discourt rates and plot the curve The NPV fora do countrite 20% smitton. (Hound to cre decimal place) Homework: Homework 37 Capital Budgeting Sme Score: 0 of 1 pt 1 of 1 complete HW Score: 0%, 0 of 1 pt P 8-11 (similar to) Question 0 Open Sea Inc. is luating the purchase of a new cruise ship. The sp Wilcout S407 milion, and will operate for 20 years. OpenSess expects and cash flows from operating the ship to be 56.1 million and cost of capitalis 11.95 2. Prepare an NPV pro of the purchase b. Identify the IRR on the graph Should Open Seas proceed with the purchase? 4. How far off could Open Seas cost of capital estimato be before your purchase decision would change? a. Prepare NPV profile of the purchase To plot the NPV profile we compute the NPV of the project for various discourt rates and plot the curve The NPV fora do countrite 20% smitton. (Hound to cre decimal place)