There will be 300 cruise days per year operated at a full capadity of 3,500 passengers The variable expenses per passenger are estiemated to be $90 per cruise day . The revenue per passenger is expected to be $450 per cruise day The fixed expenses for running the ship, other than depreciation, are estimated to be $98,280,000 per year The ship has a service life of 10 years, with a residual value of $110,000,000 at the end of 10 year Present Value of $1 at Compound Interest Present Value of an Annuity of $1 at Commpound Interest 0.833 0890 0.826 0.797 0756 21831.736 1.690 1.626 1.528 3 0.340 0.75 0.712 0658 0.579 2.673 2.487 2.402 23 2.10 3.465 3.10 0372.855 2.589 0.943 0.909 0.893 0.870 0.833 10.943 0.909 0.93 0.80 40.792 0.6830.636 0.5720482 04 40 9 3,005 3.352 6 0.70s 0.564 0507 0432 0.335.917 4.355 4.111 3.743.326 5.582 4.86845644.160 3.605 7?S65 0.513 0.452 0.376 0.279 80.62 0467 0.327 0.23310 5.335 68 47 3.837 9 0.592 0.424 0.36 0.284 1946802 5.759 5.328 4772 4.031 10 7.360 6.145 5.650 5.019 4.192 10 0.558 0.386 .322 0.247 0162 a. Determine the annual net cash flow from operating the cruse ship Variable expenses Fixed expenses Annual net cash flow b. Determind the net present value of this investment, assuming a 10% minimum ratn of return, use the present value tables provided above. I, required, round Present value of annual net cash flows Present value of residual value Total present value Amount to be lnvested Net present value Previous