Net Present Value Method for a Service Company information: - There will be 300 cruise days per year operated at a full capacity of 2,600 passengers. - The variable expenses per passenger are estimated to be $75 per cruise day. - The revenue per passenger is expected to be $375 per cruise day. - The fixed expenses for running the ship, other than depreciation, are estimated to be $60,840,000 per year. - The ship has a service life of 10 years, with a residual value of $80,000,000 at the end of 10 years. Present Value of $1 at Compound Interest Present Value of an Annuity of $1 at Compound Interest a. Determine the annual net cash flow from operating the cruise ship. b. Determine the net present value of this investment, assuming a 10