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Points OpenSeats, Inc ing the purchase of a new cruise ship. The ship will cost $497 million, and will operate for 20 years OpenSeas expect

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Points OpenSeats, Inc ing the purchase of a new cruise ship. The ship will cost $497 million, and will operate for 20 years OpenSeas expect from operating ship to be $68 0 million and its cost of capital is $1 0% a. Prepare an NPV profile of the purchase b. Identify the IRR on the graph c. Should OpertSo s proceed with the purchase? d. How far off could (JpenSeas' cost of capital estimate aid change? a. Prepare an NIV profile of the purchase To plot the NPV profile we compute the NPV of the project for various count rates and plot the curve The NPV for a discount rate of 2 0% is $ 628.0 million (Round to one decimal place) The NPV for a discount rate of $1.5% is $133.4 million. (Round to one decimal place) The NPV for a discount rate of 17 0% is $ - 109 8 million (Round to one decimal place) The NPV profile is NPV Profile of Cruise Ship Investment

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