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.

What is the NPV for 15 years and 25 years, 0% and 35% taxation?