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Mc B poin 9 Skupe Halcyon Lines is considering the purchase of a new bulk carrier for $8.6 million. The forecasted revenues are $6.0
Mc B poin 9 Skupe Halcyon Lines is considering the purchase of a new bulk carrier for $8.6 million. The forecasted revenues are $6.0 million a year and operating costs are $5.0 million. A major refit costing $3.0 million will be required after both the fifth and tenth years. After 15 years. the ship is expected to be sold for scrap at $2.5 million a. What is the NPV if the opportunity cost of capital is 8%? b. Halcyon could finance the ship by borrowing the entire investment at an interest rate of 4,5%. Will this borrowing opportunity affect your calculation of NPV? Complete this question by entering your answers in the tabs below. Requted A Required B What is the NPV if the opportunity cost of capital is 8%? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Net present value Required B > www Minut
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