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 $ $68\mathrm{.}7$ million and its cost of capital is $11\mathrm{.}6\%.$

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?

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Part $1$

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.

Part $2$

The NPV for a discount rate of $2\mathrm{.}0\%$ is $$$

$$

enter your response here million. $($Round to one decimal$$ place.$)$