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Question: Halcyon Lines is considering the purchase of a new bulk carrier for $7.1 million. The forecasted revenues are $6.5 million a year and operating costs are $5.5 million. A major refit costing $3.5 million will be required after both the fifth and tenth years. After 15 years, the ship is expected to be sold for scrap at $3.0 million.

a. What is the NPV if the opportunity cost of capital is 11%?

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Basic Finance, Finance

Category:- Basic Finance
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