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OpenSeas , Inc. is evaluating the purchase of a new cruise ship. The ship will cost $ 5 0 4 million and will operate for

OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $ 504 million and will operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $ 71.9 million and its cost of capital is 12.4%. a. The NPV for a discount rate of 2.0% is $ enter your response here million. (Round to one decimal place.) b. Identify and plot the IRR on the graph. c. should open seas go ahead with the purchase of the ship?. d. How far off could OpenSeas's cost of capital estimate be before your purchase decision would change?

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