Net Present Value Method Opulence Corporation operates several large cruise ships. One of these ships, the Bellwether, can hold up to 3,000 passengers and cost $600 million to build. Assume the following additional information: * There will be 300 cruise days per year operated at a full capacity of 3,000 passengers. The variable expenses per passenger are estimated to be $100 per cruise day . The revenue per passenger is expected to be $500 per cruise day * The fixed expenses for running the ship, other than depreciation, are estimated to be $92,700,000 per year. . The ship has a service life of 10 years, with a residual value of $100,000,000 at the end of 10 years Present Value of $1 at Compound Interest 15% 0.870 0.890 0.826 0.7970.756 0.658 0.572 0.747 0.621 0.567 0.497 0.705 0.564 0507 0.432 0.376 0.327 0.284 0.247 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 Year 696 10% 12% 0.943 0.909 0.893 2 3 4 0.840 0.751 0.712 0.792 0.683 0.636 7 8 9 10 0.665 0.513 0.452 0.627 0.467 0.404 0.592 0.424 0.361 0.558 0.386 0.322