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OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $ 5 0 5 million now, and would operate for

OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $505 million now, and would operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $71.5 million (at the end of each year, starting at the end of the 1st year) and its cost of capital is 12.1%.
a. Prepare an NPV profile of the purchase using discount rates of 2%.

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