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nce Operating the ship to be . Hon and its cost of capital is 12.2% Open Seas, Inc. is evaluating the purchase of a new

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nce Operating the ship to be . Hon and its cost of capital is 12.2% Open Seas, Inc. is evaluating the purchase of a new cruise ship. The ship wil cost $502 million and will operato for 20 years. Open Seas expects annual cash flows from a. Prepare an NPV profile of the purchase b. Identify the IRR on the graph c. Should Open Seas go ahead with the purchase? d. How far off could Open Seas's cost of capital estimate be before your purchase decision would change? a. Prepare an NPV profile of the purchase. To plot the NPV profile, we compute the NPV of the project for various discount rates and plot the curve The NPV for a discount rate of 20% million (Round to ono decimal place.)

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