Discount rate $=12\%$:

Purchase price of the vessel $=$ $$44$ million

Additional capital expenditures:

$$300,000(1$st$)$

$$350,000(2$nd$)$

$$650,000(3$rd$)$

$$1,200,000(4$th$)$

Initial working capital investment $=$ $$500,000$

Useful life of the ship $=25$ years

Salvage value $=$ $$8$ million

Expected inflation rate $=3\%$

Now, let's calculate the present value of cash inflows $($revenues$)$ and outflows:

Present value of cash inflows:

Calculate annual revenues based on the econometric model and forecasted daily hire rates.

Discount each year's revenue back to the present value using the discount rate.

Sum up the present values of all future revenues.

Present value of cash outflows:

Purchase price of the vessel

Additional capital expenditures

Initial working capital investment

NPV $=$ PV$($Inflows$)-$ PV$($Outflows$)$Once we have these values, we can calculate the NPV for a discount rate of $12\%,14\%,$ and $16\%.$