Compute the npv of the project

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Case: OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $503 ?million, and will operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $69.4 million and its cost of capital is 11.5%.

a. Prepare an NPV profile of the purchase.To plot the NPV profile we compute the NPV of the project for various discount rates and plot the curve.Part 2The NPV for a discount rate of 2.0% is $ million. ? (Round to one decimal? place.)

Reference no: EM133492672

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