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OpenSeas, Inc., is evaluating the purchase of a new cruise ship. The ship will cost $500 million, and will operate for 20 years. OpenSeas expects

OpenSeas, Inc., is evaluating the purchase of a new cruise ship. The ship will cost $500 million, and will operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70 million and its cost of capital is 12%. image text in transcribed

image text in transcribed

Please show Excel Functions, thank you!

$ 500 20 Investment (million) Number of periods (years) Annual cash flow (million) Cost of capital $ 70 12% a. Prepare an NPV profile of the purchase. NPV (million) Cost of Capital 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% In cell range E19:E39, by using cell references, calculate the NPV of the investment opportunity for cost of capital 0% : 20%, respectively. Note: In the PV function, omit the [fv] and [type] arguments. (21 pt.). In cell range C41:F52, insert a Line chart to plot the NPV profile of the investment opportunity with the cost of capital (cell range D19:D39) on the horizontal axis and the NPV (cell range E19:E39) on the vertical axis. Use the following labels: title: NPV Profile, horizontal axis label: Cost of Capital and vertical axis label: NPV (million). (5 pt.)

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