Question: Net Present Value Method Opulence Corporation operates several large cruise ships. One of these ship5, the Bellwether, can hold up to 3,600 passengers and cost

 Net Present Value Method Opulence Corporation operates several large cruise ships.
One of these ship5, the Bellwether, can hold up to 3,600 passengers

Net Present Value Method Opulence Corporation operates several large cruise ships. One of these ship5, the Bellwether, can hold up to 3,600 passengers and cost 5720 million to bulid. Assume the following additional information: - There will be 300 cruise days per year operated at a full capacty of 3,600 passengers. - The variable expenses per passenger are estimated to be $95 per crulse day. - The revenue per passenger is expected to be $475 per cruise day. - The foxed expenses for running the ship, other than depreciation, are estimated to be $106,704,000 per year. - The shlp has a service life of 10 years, with a residual value of $120,000,000 at the end of 10 years. a. Determine the annual net cash fow from operating the crulse shipe. a. vetermine the annual net cash flow from operating the cruise ship. b. Determine the net present value of this investment, assuming a 10% minimum rate of return. Use the present value tables provided above. If required, round to the nearest whole dollar. Fentestaik T Ghech Uy Work and the present valie of the residual value. Subtract the amount to be livested

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