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Net Present Value Method for a Service Company Assume the following additional information: - There will be 300 cruise days per year operated at a

image text in transcribedimage text in transcribed Net Present Value Method for a Service Company Assume the following additional information: - There will be 300 cruise days per year operated at a full capacity of 2,700 passengers. - The variable expenses per passenger are estimated to be $70 per cruise day. - The revenue per passenger is expected to be $350 per cruise day. - The fixed expenses for running the ship, other than depreciation, are estimated to be $58,968,000 per year. - The ship has a service life of 10 years, with a residual value of $90,000,000 at the end of 10 years. Present Value of an Annuity of $1 at Compound Interest a. Determine the annual net cash flow from operating the cruise ship

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