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Your company is considering the purchase of a new ship for $8 million. The forecasted revenues are $5 million a year and operating costs are

Your company is considering the purchase of a new ship for $8 million. The forecasted revenues are $5 million a year and operating costs are $4 million. A major refit costing $2 million will be required after both the fifth and tenth years. After 15 years, the ship is expected to be sold for scrap at$1.5 million. What is the NPV if the opportunity cost of capital is 8%?

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