Can you please help answer the following questions.

Assume a 9% discount rate for Ocean Carriers

1. 1. Do you expect daily spot hire rates to increase or decrease nest year?
2. 2. What factors drive average daily hire rates?
3. 3. How would you characterize the long term prospects of the capsize dry bulk industry?
4. 4. What do you think of the firm?s policy of not operating ships over 15 years old?
5. 5. Should Ms. Linn purchase the $39 million capsize? Make two different assumptions:
   1. First, assume that Ocean Carriers is a US firm subject to 35% tax rate.
   2. Second, assume that Ocean Carriers is located in Hong Kong where owners of Hong Kong ships are not required to pay any tax on profits made overseas and are also exempted from paying any tax on profits made on cargo uplifted from Hong Kong.

Write your response to the case questions in MS Word with supporting numbers. Make your calculations in a spreadsheet. You are required to attach both documents for this assignment.