Question: Open Seas Inc. is vakanting to purchase of a new cruise ship. The ship wilco S605 nilion and will operate for 20 yeurs Open Seas
Open Seas Inc. is vakanting to purchase of a new cruise ship. The ship wilco S605 nilion and will operate for 20 yeurs Open Seas expects annual cash flows from operating the ship to be 570 million and de cost of capitalis 117 a Prepare an NPV profile of the purchase b. Idently the Ron the graph c. Should OpenSo go ahead with the purchase? a Howtar of could Operson's cost of capital otte be before your purchase dedition would change? Proponen NPV profile of the purchase To plot the NP profile we compute NPV of the project for various discounts and plot the curve The NPV for a discount of 2.0 Round to one decimal place
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