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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 EBIT Year 1 -

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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 EBIT Year 1 - Year 10 Depreciation (straight line) Scrap Value Year 10 Tax Rate Interest Rate WACC $40m $5m 10% pa 10% $5m 30% 7% 10% Hint: Calculate NOPAT =EBIT(1 Tax rate ) Calculate the NPV

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