Leisure, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $504 million, and will operate for 20 years Leisure expects annual cash flows from operating the ship to be $68 2 million and its cost of capital is 112% a. Prepare an NPV profile of the purchase b. Identify the IRR on the graph c. Should Leisures Inc, proceed with the purchase? d. How far off could Leasure's cost of capital estimate be before your purchase decision would change? 100 0 3 10 16 18 -100 200 Discount rate() 3 b. Identify the IRR on the graph The approximate IRR from the graph is (Round your answer to one decimal place) c. Should Leisure inc go ahead with the purchase? (Select the best choice below) A No, because at a discount rate of 112%, the NPV is negative B. Yes, because at a discount rate of 112, the NPV is negative OC. No, because at a discount rate of 112, the NPV is positive OD. Yes, because at a discount rate of 112 the NPV is positive d. How far off could Leisure's cost of capital estimate be before your purchase decision would change? (Note Subtract the discount rate from the approximate IRR) The cost of capital estimate can be off by Us (Round to one decimal place.) Click to select your answer(s) Descop E I @ e