Halcyon lines is considering the purchase of is considering


Question: Halcyon Lines is considering the purchase of is considering the purchase of a new bulk carrier for $8 million. is are $5 million a year and operating 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. If the discount rate is 8%, what is the ship's NPV?

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