OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $499 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 12.3%. a. Prepare an NPV profile of the purchase. b. Identify the IRR RR on the graph. c. Should Open Seas proceed with the purchase? d. How far off could OpenSeas' cost of capital estimate be before your purchase decision would change? 300 900- 700 GDO NPV (S millions) 500 400 200 200 100- 4 200 Discount rate %) b. Identify the IRR on the graph The approximate IRR from the graph is X. (Round your answer to one decimal place.) c. Should OpenSeas go ahead with the purchase? (Select the best choice below.) O A. Yes, because at a discount rate of 12.3%, the NPV is negative. OB. No, because at a discount rate of 12.3%, the NPV is positive. OC. Yes, because at a discount rate of 12.3%, the NPV is positive. OD. No, because at a discount rate of 12.3%, the NPV is negative. d. How far off could OpenSeas' cost of capital estimate be before your purchase decision would change? (Nole: Subtract the discount rate from the approximate IRR.) The cost of capital estimate can be off by %. {Round to one decimal place.)