You work for a shipping company that is considering purchasing a new container ship to be named The IBP Frankfurt. You anticipate that the ship will cost $100 million that you will pay today (time 0). The ship will generate $20 million per year in positive cash flow every year for the next 15 years. At the end of year 15, you anticipate that you will be able to sell the ship for $10 million. For simplicity, assume that all of the cash inflows occur at the end of each year.

Your chief financial officer (CFO) has decreed that the Weighted Average Cost of Capital to be used for analyzing this project is 10%.

1. What is the NPV of the project?

1. What is the IRR of the project?

1. Based on the information given here, do you recommend that the company purchase the new ship? Why or why not? (in 25 words or less)