Must use cell references to create a line chart from a.'s results.

Problem 8-12 OpenSeas, Inc., is evaluating the purchase of a new cruise ship. The ship will cost $500 million, and will operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70 million and its cost of capital is 12%. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. a. Prepare an NPV profile of the purchase. b. Calculate the IRR from the data. c. Should Open Seas proceed with the purchase? d. How far off could OpenSeas' cost of capital estimate be before your purchase decision would change? $ Investment (million) Number of periods (years) Annual cash flow (million) Cost of capital 500 20 70 12% $ Problem 8-12 OpenSeas, Inc., is evaluating the purchase of a new cruise ship. The ship will cost $500 million, and will operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70 million and its cost of capital is 12%. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. a. Prepare an NPV profile of the purchase. b. Calculate the IRR from the data. c. Should Open Seas proceed with the purchase? d. How far off could OpenSeas' cost of capital estimate be before your purchase decision would change? $ Investment (million) Number of periods (years) Annual cash flow (million) Cost of capital 500 20 70 12% $