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sos Openseas, Insi is avaluating the purchase of a now cruiso ship. The ship will cost $605 million, and wat operalo for 20 years. OporiSaas
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Openseas, Insi is avaluating the purchase of a now cruiso ship. The ship will cost $605 million, and wat operalo for 20 years. OporiSaas expecte arnuel cash fows from coerating the ship to bo 560.5 milion and ins cont of captal in 11.6\%. a. Prepare an NPV pectile of the purchate. b. Wently the IRR on the graph. c. Shodd Openseas prooeed with the purchase? d. Hon far off could Opensieta' cont of capital estrmate be belore your purchase ducision weuld change? a. Prepore an NPN profle of the purchase. To plat the NPV protis we compute the NPV of the propect ior various discount rates and plot the ourve. The NPV for a disoount rate of 20% is 1 milion. (Round to one decimal plasee) Step by Step Solution
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