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OpenSeas, Inc is evaluating the purchase of a new envise ship. The sho will cost $500 milion and will operabe for 20 years. OpenSeas expects

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OpenSeas, Inc is evaluating the purchase of a new envise ship. The sho will cost $500 milion and will operabe for 20 years. OpenSeas expects annual cash fows from operating the ship to be $7+8 milion and lis cost of capitat is 122%. a. Prepare an NPV proble of the purchase. b. Identily the IRR on the graph. c. Should Openseas go ahead with the purchise? d. How far cll could Openseas's cout of capital esimate be before your purchase decision would change? a. Prepare an NPV profle of the purchase To plot the NPV profile, we compute the NPV of the project for vahous discourt rates and plot the curve. The NPV for a docount nite of 201 in 1 milion. (Round to one decimal place).)

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