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OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $503 million, and will operate for 20 years. OpenSeas expects

OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $503 million, and will operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $71.6 million and its cost of capital is 12.1%.

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