Net Present Value Method for a Service Company

Carnival Corperation has recently placed into service some of the largest crulse ships in the world. One of these ships, the Carnival Areere, can hold up to $3,600$ passengers, and it can cost $$750$ million to build. Assume the following additional information:

There will be $330$ crulse days per year operated at a full capacity of $3,600$ passenpers.

The variable expenses per passenger are estimated to be $$140$ per cruise day.

The revenue per passenger is expected to be $$340$ per crulse day.

The fixed expenses for running the ship, other than depreciation, are estimated to be $$00,000,000$ per year.

The ship has a service life of $10$ years, wth a residual value of $$140,000,000$ at the end of $10$ years.

Present Value of $$1$ at Compound Interest

$\backslash$table$[[$Year$,6\%,10\%,12\%,15\%,20\%],[1,0\mathrm{.}943,0\mathrm{.}909,0\mathrm{.}893,0\mathrm{.}870,0\mathrm{.}833],[2,0\mathrm{.}890,0\mathrm{.}826,0\mathrm{.}797,0\mathrm{.}756,0\mathrm{.}694],[3,0\mathrm{.}840,0\mathrm{.}751,0\mathrm{.}712,0\mathrm{.}658,0\mathrm{.}579],[4,0\mathrm{.}792,0\mathrm{.}683,0\mathrm{.}636,0\mathrm{.}572,0\mathrm{.}482],[5,0\mathrm{.}747,0\mathrm{.}621,0\mathrm{.}567,0\mathrm{.}497,0\mathrm{.}402],[6,0\mathrm{.}705,0\mathrm{.}564,0\mathrm{.}507,0\mathrm{.}432,0\mathrm{.}335],[7,0\mathrm{.}665,0\mathrm{.}513,0\mathrm{.}457,0\mathrm{.}376,0\mathrm{.}279],[8,0\mathrm{.}627,0\mathrm{.}467,0\mathrm{.}404,0\mathrm{.}327,0\mathrm{.}233],[9,0\mathrm{.}592,0\mathrm{.}424,0\mathrm{.}361,0\mathrm{.}284,0\mathrm{.}194],[10,0\mathrm{.}558,0\mathrm{.}386,0\mathrm{.}322,0\mathrm{.}247,0\mathrm{.}162]]$

Present Value of an Annuity of $$1$ at Compeund Interest

$\backslash$table$[[$Year$,5\%,10\%,12\%,15\%,20\%$