Question: Solve in excel and show how to create an NPV profile graph including the table. OpenSeas, Inc. is evaluating the purchase of a new cruise

Solve in excel and show how to create an NPV profile graph including the table.

OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $500 million, but would operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70 million and its cost of capital is 12%.

(a) Prepare an NPV profile of the purchase.

(b) Identify the IRR on the graph.

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