Prohlean $9-4$ Present Valne and "What IT$"$ Analysis the president of the compery asked the CFO sp analyse cash flows maccised with operating the ship under two alkemative itineraries: Itinerary $1,$ Caribbean Wianer$/$Alabla Samner and Minerary $2,$ Carkbeal Winter Easten Canada Summer. The CFO estimated the following cash flows, which are expectod to apply to each of the noxt $15$ years:

$\backslash$table$[[,],[,$Net revenur$],[,$Less:$],[,$Direct proprame expenses$],[,$Indirect propram expenses$],[,$Non$-$operating expenses$],[,$Add back depecestion$],[,$Cash flow per year$],[,]]$

$\backslash$table$[[$Cerabere Masals,Carhbean Easern Casade$],[120\mathrm{.}000\mathrm{.}060,105,000,050],[-25,000,000,-24,000,000],[2$e$.$a$0$eate,$-20,000\mathrm{.}000],[-21\mathrm{.}900.$a$0,21\mathrm{.}00090],[115\mathrm{.}000\mathrm{.}000,115,000,050],[160\mathrm{.}000\mathrm{.}901,155,000\mathrm{.}0\mathrm{.}0]]]$

The estimated cost of the new ship and during of erpected cash flews is:

A$.$ For ekeb of the itincraties, calculate the presert valoes of the cal hlass ning nequired rates of neturn of both becimon Should the compsiy purchaw the ship with either or both nopuired naks of noturn?

b$.$ The peesident is uncertsin whether a $12$ pervest er a $16$ peroent negeirod notarn is appropriate. Explain whys$.$ SHOW EXCEL FORMULAS