OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $$497$ million and will operate for $20$ years. OpenSeas expects annual cash flows from operating

the ship to be $$71\mathrm{.}2$ million and its cost of capital is $12\mathrm{.}5\%.$

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 $2\mathrm{.}0\%$ is $ $?$million. $($Round to one decimal place.$)$