Net De Vtor Serve Company Carnival (lyhas recently placed in service some of the largest use this in the world of these shoh Carwrechod up to 2.0 por which cost $750 million to build the following additional information There will be 340 crudys per year operated alull capacity of 3,000 passengers The variable expenses per passenger are estimated to be $100 pet crune day The revenue per Danger is expected to be 5280 per crne day The fixed expenses for running the sho, other than depreciation, stimated to be $90,000,000 per ye The ship has a service life of 10 years with residuale of $60,000,000 at the end of 10 years Present Value of St at Compound Interest Year TOW 30 1 0 2 3 0. 0.52 1 0.000 0.840 0.792 0.147 0.703 0.63 0.750 050 0.52 007 0.41 0.030 0.5 QAZ 5 0.42 0.021 05 0507 452 0.00 051 0.270 27 0.463 o 0592 0424 0.361 00 10 0.242 0.162 Present Value of an Annuity of Si at Compound interest Present Value of an Annuity of S1 at Compound Interest Year 6% 10 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.83 2 1.833 1.736 1.690 1.626 1.52 3 2.673 2,487 2.402 2.283 2.100 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 1.111 3.785 3.326 2 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4,487 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 6.192 a. Determine the annual net cash flow from operating the cruise ship Revenues Variable expenses Fixed expenses (other than depreciation) Annual net cash flow b. Determine the net present value of this investment, assuming a 12% minimum rate of retum. Use the present value tables provided above Present value of annual net cash flows 4 3.170 2.855 3.465 4212 3.03 X605 5 3.791 2.091 6 4917 3.785 3326 3603 7 5.582 4.868 44100 4.06 3.83 9 5:328 4.792 6.802 7.360 10 6.145 5.650 5,019 4.192 a. Determine the annual net cash flow from operating the cruise ship Revenues Variable expenses Fixed expenses (other than depreciation) Annual net cash flow b. Determine the net present value of the investment, assuming a 12% minimum rate of return the rest valuables provided about Present vous of annual net cash flow Present value of residual value Total present value Amount to be invested Net procent value