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Super shipping wants to invest in a new ship. Given the following, calculate the Net Present Value: CAPEX in Year 0 $40m EBIT Year 1

Super shipping wants to invest in a new ship. Given the following, calculate the Net Present Value: CAPEX in Year 0 $40m EBIT Year 1 Year 10 $5m Depreciation (straight line) 10% pa Scrap Value Year 10 $5m Tax Rate 30% Interest Rate 7% WACC 10% Hint: Calculate NOPAT = EBIT x (1 Tax rate) Calculate the NPV

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