OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $498...

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OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $498 million, and would operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $69.7 million (at the end of each year) and its cost of capital is 11.9% a. Prepare an NPV profile of the purchase using discount rates of 2.0%, 11.5% and 17.0%. b. Identify the IRR (to the nearest 1%) on a graph. c. Is the purchase attractive based on these estimates? d. How far off could OpenSeas' cost of capital be (to the nearest 1%) before your purchase decision would change? Note: Subtract the discount rate from the actual IRR. Use Excel to compute the actual IRR. a. Prepare an NPV profile of the purchase using discount rates of 2.0%, 11.5% and 17.0%. The NPV for a discount rates of 2.0% is $ million. (Round to the nearest integer.) OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $498 million, and would operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $69.7 million (at the end of each year) and its cost of capital is 11.9% a. Prepare an NPV profile of the purchase using discount rates of 2.0%, 11.5% and 17.0%. b. Identify the IRR (to the nearest 1%) on a graph. c. Is the purchase attractive based on these estimates? d. How far off could OpenSeas' cost of capital be (to the nearest 1%) before your purchase decision would change? Note: Subtract the discount rate from the actual IRR. Use Excel to compute the actual IRR. a. Prepare an NPV profile of the purchase using discount rates of 2.0%, 11.5% and 17.0%. The NPV for a discount rates of 2.0% is $ million. (Round to the nearest integer.)