OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship...
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Accounting
OpenSeas Inc. is evaluating the purchase of a new cruise ship.
The ship will cost$million and will operate foryears. OpenSeas expects annual cash flows from operating the
ship to be$million and its cost of capital isa Prepare an NPV profile of the purchase.b Identify the IRR on the graph.c Should OpenSeas proceed with thepurchased How far off couldOpenSeas cost of capital estimate be
before your purchase decision wouldchange
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