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Week 7 Workshop 1.OpenSeas is evaluating the purchase of a new cruise ship. The ship would cost $500 million, but would operate for 20 years.

Week 7 Workshop

1.OpenSeas is evaluating the purchase of a new cruise ship. The ship would cost $500 million, but would operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70 million and its cost of capital is 12%. What is the NPV? Should you accept the project and why?

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