Sea Fun Corporation has recently placed into service some of the largest cruise ships in the world. One of these

ships, the Dolphin, can hold up to $3,800$ passengers, and it can cost $$850$ million to build. Assume the following

additional information:

There will be $330$ cruise days per year operated at a full capacity of $3,800$ passengers.

The variable expenses per passenger are estimated to be $$140$ per cruise day.

The revenue per passenger is expected to be $$350$ per cruise day.

The fixed expenses for running the ship, other than depreciation, are estimated to be $$80,000,000$ per year.

The ship has a service life of $10$ years, with a residual value of $$140,000,000$ at the end of $10$ years.

Required, using an Excel worksheet:

A$.$ Determine the Annual Net Cash Flow from operating the cruise ship $($must show all computations using

Excel$).$

B$.$ Determine the Net Present Value of this investment, assuming a $15\%$ minimum rate of return $($must show all

computations using Excel$).$ Use the present value tables $($Exhibit $2$ on page $529$ and Exhibit $5$ on page $531,$ class

textbook, $16$ ed$.)$ provided in Chapter $12$ in determining your answer.

Instructions $($CEs$)$:

FORMAT: Must submit using an Excel worksheet. Dollar signs, commas, single lines, and double lines must be

used when required. Note: Using any other format than Excel will receive a $20-$point deduction.