Question
OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $500 million, and would operate for 20 years. OpenSeas expects
OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $500 million, and would operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70 million (at the end of each year) and its cost of capital is 12%.
Part A - Prepare an NPV profile of the purchase.
Chapter 7, Question 7d: OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $500 million, and would operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70 million (at the end of each year) and its cost of capital is 12%.
Part D - How far off could OpenSeas cost of capital be (to the nearest 1%) before your purchase decision would change?
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Cryptoconomy Bitcoins Blockchains And Bad Guys
Authors: Gary Miliefsky
2nd Edition
1962595900, 978-1962595902
