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OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $501 million and will operate for 20 years. OpenSeas expects

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OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $501 million and will operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70,9 million and its cost of capital is 12.1%. a. Prepare an NPV profile of the purchase. b. Identify the IRR on the graph. c. Should OpenSeas go ahead with the purchase? d. How far off could OpenSeas's cost of capital estimate be before your purchase decision would change? a. Prepare an NPV profile of the purchase. To plot the NPV profile, we compute the NPV of the project for various discount rates and plot the curve. The NPV for a discount rate of 2.0% is $ million. (Round to one decimal place.) You own a coming company and we considering ingamine the mine will come ini menyispindly with that the must be cleared and mandatario de Theaning and dance expected to reality What does the who cost of canon what the Navy New the Cow Mine NPV) Data What does the IRR sy shot whether you should do this opportunity Select the best choice below DA Acort the oportunity because the IRR is greater than the cost of capital There are two R, so you cannot use the action to accepting the oportunity Reject the opportunity because the lower than the 70% of capital D. The IRR in 74% o accept the opportunity The NPV using the cost of caption Round to three decinal places)

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