Suppose Ocean Carriers uses a $9\%$ discount rate. Should Ms$.$ Linn purchase the $$39$ capesize? Conduct your study on two scenarios: First, assume that Ocean Carriers is a U$.$S$.$ firm who is subject to $35\%$ taxation. 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 profit made on cargo uplifted from Hong Kong.

$1.$Do you expect daily spot hire rates to increase or decrease next year?

$2.$What factors drive average daily hire rate?

$3.$How would you characterize the long$-$term prospects of the capesize dry bulk industry?

$4.$What do you think of the company$$s policy of not operating ships over $15$ years old?