Solution-What is the net present value of the project

What is the net present value of the project

Reference no: EM133136117

Question - LakeCraft is considering investing in a cruise ship with an expected life of 10 years that costs $110 million and will produce net cash flows of $13 million per year. LakeCraft's cost of capital is 6%.

Required -

1. What is the payback period?

2. What is the net present value (NPV) of the project?

Reference no: EM133136117

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What is the net present value of the project

Reference no: EM133136117

Reference no: EM133136117

Questions Cloud

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Accounting Basics Questions & Answers

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Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

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