Considering the purchase of new bulk carrier

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Halcyon Lines is considering the purchase of a new bulk carrier for $7.4 million. The forecasted revenues are $6.2 million a year and operating costs are $5.2 million. A major refit costing $3.2 million will be required after both the fifth and tenth years. After 15 years, the ship is expected to be sold for scrap at $2.7 million.

a. What is the NPV if the opportunity cost of capital is 8%?

Reference no: EM131190213

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