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Icyon Lines is considering the purchase of a new bulk carrier for $ 7 . 2 million. The forecasted revenues are $ 6 . 4
Icyon Lines is considering the purchase of a new bulk carrier for $ million. The forecasted revenues are $ million a year and erating costs are $ million. A major refit costing $ million will be required after both the fifth and tenth years. After years, the ip is expected to be sold for scrap at $ million.
a What is the NPV if the opportunity cost of capital is
b Halcyon could finance the ship by borrowing the entire investment at an interest rate of Will this borrowing opportunity affect your calculation of NPV
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Halcyon could finance the ship by borrowitg the entire investment at an interest rate of Will this borrowing opportunity affect your calculation of NPV
Will this borrowing opportunity affect your calculation of NPV
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