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What is the NPV

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Reference no: EM133100041

Question - Halcyon Lines is considering the purchase of a new bulk carrier for $8 million. The forecasted revenues are $5 million a year and oper- ating costs are $4 million. A major refit costing $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 $1.5 million. What is the NPV if the opportunity cost of capital is 8%?

Reference no: EM133100041

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