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part A-D please on this question OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $ 4 9 9

part A-D please on this question image text in transcribed
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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
$68.5
million and its cost of capital is
11.4%.
a. Prepare an NPV profile of the purchase.
b. Identify the IRR on the graph.
c. Should OpenSeas proceed with the purchase?
d. How far off could OpenSeas' cost of capital estimate be before your purchase decision would change?
a. Pristare an NPV prefle of the purchase. b. bsontsy the ber on the graphi c. 5 hould Opensees proceed with the purchase? d. thow far all could opensess cost of capizal ewtimate be belore your purchase decieion wodid thange? a. Phepare an NPY prite of the parthase a. Presare at Nipy profie of the pivitate b. Weres, the 1PR on the grieh. c. Stould operteat procese at ate purdese

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