Question
Answered step-by-step

This is from Managerial Accounting by James Jiambalvo Seventh Edition.  Page 9-30.  I am stuck and don't know what goes in Row 47.  I am not sure the rest is correct either so would like guidance, please.

 

Image transcription text

Wrap Text Cut Liberation Sand - 11 AA E Merge & Center BIU - I- O-A- Formal Painter Number Alignment Font G H C 1 Problem 9-4 Present Value and "What If" Analysis - See Textbook page 9:30 National Cruise Line, Inc. is considering the acquisition of a new ship that will cost 600,000,000. In 3 this regard, the president of the company asked the CFO to analyze cash flows associated with 4 spointing the ship under two sitemathe finerare so tingtary 1. Caribbean Winter/Alaska Summer 5 and Itinerary ?. Canbbean Winter Eastem Canada Summer. The CFO estimated the following cash Bows, which and expected to apply to each of the next 15 years; 7 Carbbean! Combbean Alaska Festern Canada B Net revenue $ 120,000,000 5 105,090,060 Direct program expenses (26,000,000) (24.060 000) 12 Indirect program expenses 20.000,000) (20.000 002] (21,000.D00) (21.000,000) 14 And back depreciation 115.000 900 115,0 00.000 15 Cash flow per year. 169 000 0405 155.090.900 16 17 The eif mated cost of the now ship and during of expected cash flows is: 19 Estimated cost of new ship 600 090 20 Estimated pored of cash bows in years 15 22 Required 30 a. Bor wack of the itineraries, calculate the prevent values of the cash flows using required rates of 24 Jenturn of both 12 and 16th using beth present value factors and separately using Excel PV function Assume a 15-your life horizon. Should the company purchase the ship with either or both required 25 tales of return? 25 (Use Appendix Table 19.7 to arrive at the factor] 27 28 12% Cash Flow Factor 159 000,309 $ 1,151.042,100 31 16% 32 6.5755 $ 912.259 500 Canbball Eastern Canada 156,000 080 37 $ 1.056,689.500 $ 861 202 500 Type here to search M W

... Show more

Image transcription text

50 24 41 Data Review Help Formulas Home Insert Page Layout - 12 AA to Wrap Text Liberation Sans [ Copy + E Merge & Center Paste Format Painter Number Ton! Allgnment 5 H C E F G 41 42 Canbbean Masks Canbbean! Eastern Canada 43 Rate 12% 16% 12% 16% 144 Number of periods 15 15 15 45 Cash Flow 169,000,000 5 169.090 000 $ 165,000.000 5 155.900,060 46 Future wake $0 50 AT 49 PV 50:for the PV values in cells D49 E49, F49, G49, use the Microsoft excel functions. If you need help with the cacel function, See Appendis A 51 52 Should the company purchase the ship with either or both required rules of retum? Explain 53 54 55 58 6. The president is uncertain whether a 12 percent or a 15 percent required return is appropriate 59 Explain wiry 61 Fails. Focusing on a 12 percent requited rate of retum, what would be the opportunity cost to the Is company of using the ship in the Cantbear.Eastem Canada itinerary rather than a FT Cantbrian Marks dinetary? 60 72 73 75 2 Type hete to search W

... Show more

Answer & Explanation
Verified Solved by verified expert
Rated Helpful
<p>acinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetu</p> Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet

Unlock full access to Course Hero

Explore over 16 million step-by-step answers from our library

Subscribe to view answer
ia pulvi
itur laoreeultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Liscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequr laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce du
su0000
tgue vel laoreet ac, dfficitur laoreet.Donec aliquet. Loat, ultrices ac ma
Step-by-step explanation

onec aliquet. Lorem ipsum dolor

gue

amet, consectetur adipiscing elit. Nam lacinia pulvina

ec aliquet. Lorem ipsum dolor

cing elit.

ultrices

sum dolor sit amet,

ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus

icitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. P

gue

e vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapi

Student reviews
50% (2 ratings)
Thorough explanation
Easy to follow
Clear formatting

"Many thanks! This was extremely helpful."