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Determining the npv if the opportunity cost of capital

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Halcyon Lines is considering the purchase of a new bulk carrier for $7.0 million. The forecasted revenues are $6.6 million a year and operating costs are $5.6 million. A major re?t costing $3.6 million will be required after both the fifth and tenth years. After 15 years, the ship is expected to be sold for scrap at $3.1 million.

a. What is the NPV if the opportunity cost of capital is 10%? (Enter your answer in dollars, not millions of dollars. Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount)

Reference no: EM133056420

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