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ship to be $ 7 1 . 5 million ( at the end of each year ) and its cost is 1 2 . 3

ship to be $71.5 million (at the end of each year) and its cost is 12.3%
a. Prepare an NPV profile of the purchase using discount rates of 2.0%,11.5% and 17.0%.
b. Identify the IRR (to the nearest 1%) on a graph.
c. Is the purchase attractive based on these estimates?
d. How far off could OpenSeas' cost of capital be (to the nearest 1%) before your purchase decision would change?
Note: Subtract the discount rate from the actual IRR. Use Excel to compute the actual IRR.
a. Prepare an NPV profile of the purchase using discount rates of 2.0%,11.5% and 17.0%.
The NPV for a discount rates of 2.0% is $ million. (Round to two decimal places.)
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