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Open seas Inc. is evaluating the purchase of a new cruise ship the ship will...

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Finance

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Open seas Inc. is evaluating the purchase of a new cruise ship the ship will cost 504 million and will operate for 20 years. open seas expects annual cash flow from the operating ship to be 71.9 million and it cost of capital is 12.2%
A-prepair and NPV profile of the purchase
B-identify the IRR on the graph
C-should open seas proceed with the purchase
D-how far off could open seas cost of capital estimate be before your purchase decision with change
A-prepare an MPV profile of the purchase to plot the MPV profile we compute the MPV of the project for various discount rates and plot the curve
The MPV for a discount rate of 2% is??? million (round to one decimal place)
a. Prepare an NPV profle of the purchase b. Identify the IRR on the 9 raph c. Should OpenSeas proceed with lhe puichase ? d. How far off could OpenSeas' cost of capilal ebtion a. Propare an NPV profile of the purchase To plot the NPV profile we compule the NPV of the prejed foi various discourit rata The NPV for a discount rate of 2.0% is 4 mieien (Houind to one decimat place )

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