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Book Value of Ship

Annual Depreciation
Tax Rate
Expected Inflation Rate
Discount Rate
Life

Age of Ship

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

39000
1560
35%
3%
9%
25

Iron Ore
Shipments
Event Calender (Millions of
Years
Year
Tons)
0
2000
440
1
2001
436
2
2002
445
3
2003
454
4
2004
463
5
2005
472
6
2006
479
7
2007
486
8
2008
493
9
2009
501
10
2010
508
11
2011
516
12
2012
524
13
2013
532
14
2014
540
15
2015
548
16
2016
556
17
2017
564
18
2018
573
19
2019
581
20
2020
590
21
2021
599
22
2022
608
23
2023
617
24
2024
626
25
2025
636
26
2026
645
27
2027
655

% Growth
7.30%
-0.91%
2.06%
2.02%
1.98%
1.94%
1.48%
1.46%
1.44%
1.62%
1.40%
1.57%
1.55%
1.53%
1.50%
1.48%
1.46%
1.44%
1.60%
1.40%
1.55%
1.53%
1.50%
1.48%
1.46%
1.60%
1.42%
1.55%

Average
Daily
Charter
Rate
15,344
14,747
15,072
15,403
15,742
16,088
16,273
16,460
16,650
16,841
17,035
17,231
17,429
17,629
17,832
18,037
18,245
18,454
18,667
18,881
19,098
19,318
19,540
19,765
19,992
20,222
20,455
20,690

% Growth
21.50%
-3.89%
2.20%
2.20%
2.20%
2.20%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%
1.15%

Adjusted
Factor for
Hire Rate

1.15
1.15
1.15
1.15
1.05
1.05
1.05
1.05
1.05
1.00
1.00
1.00
1.00
1.00
0.80
0.80
0.80
0.80
0.80
0.75
0.75
0.75
0.75
0.75
0.65

Adjusted
Daily Hire
Rate

17,713
18,103
18,501
18,714
17,283
17,483
17,683
17,887
18,093
17,429
17,629
17,832
18,037
18,245
14,763
14,934
15,105
15,278
15,454
14,655
14,824
14,994
15,167
15,341
13,449

Expected
Daily
Daily Hire Operating Days
Rate
Costs
Hired

20,000
20,200
20,400
18,714
17,283
17,483
17,683
17,887
18,093
17,429
17,629
17,832
18,037
18,245
14,763
14,934
15,105
15,278
15,454
14,655
14,824
14,994
15,167
15,341
13,449

4,000
4,160
4,326
4,499
4,679
4,867
5,061
5,264
5,474
5,693
5,921
6,158
6,404
6,660
6,927
7,204
7,492
7,792
8,103
8,427
8,764
9,115
9,480
9,859
10,253

357
357
357
357
357
353
353
353
353
353
349
349
349
349
349
349
349
349
349
349
349
349
349
349
349

Revenue

7,140
7,211
7,283
6,681
6,170
6,171
6,242
6,314
6,387
6,152
6,153
6,223
6,295
6,368
5,152
5,212
5,272
5,332
5,394
5,115
5,173
5,233
5,293
5,354
4,694

Operating
Costs
Depreciation Tax EBIAT Depreciation

1,460
1,518
1,579
1,642
1,708
1,776
1,847
1,921
1,998
2,078
2,161
2,248
2,338
2,431
2,528
2,629
2,735
2,844
2,958
3,076
3,199
3,327
3,460
3,598
3,742

1560
1560
1560
1560
1560
1620
1620
1620
1620
1620
1630
1630
1630
1630
1630
1710
1710
1710
1710
1710
1730
1730
1730
1730
1730

1,442
1,447
1,450
1,218
1,016
971
971
970
969
859
826
821
815
807
348
305
289
272
254
115
86
62
36
9
-273

2,678
2,686
2,693
2,261
1,886
1,804
1,804
1,802
1,800
1,595
1,535
1,525
1,513
1,499
646
567
538
506
472
214
159
114
67
17
-506

Period
0
1
2

1560
1560
1560
1560
1560
1620
1620
1620
1620
1620
1630
1630
1630
1630
1630
1710
1710
1710
1710
1710
1730
1730
1730
1730
1730

Payment
3,900
3,900
31,200

Cap Ex

300

350

750

850

Change in
NWC

500
15
15
16
16
17
17
18
18
19
20
20
21
21
22
23
23
24
25
26
26
27
28
29
30
-1017

PV Amount PV Amount
3900
3900
3577.981651
3679
26260.41579
27768
33738
35347

After Tax
Proceeds
from Sale

4,368

Book
Cash Flow PV (CF) Value
3,900
7,800
-500
-500 39,000
4,223
3261 37,440
4,231
2997 35,880
4,237
2754 34,320
3,805
2269 32,760
3,129
1712 31,500
3,406
1710 29,880
3,406
1568 28,260
3,404
1438 26,640
3,401
1318 25,020
2,846
1012 23,750
3,145
1026 22,120
3,134
938
20,490
3,121
857
18,860
3,107
783
17,230
1,503
347
16,350
2,254
478
14,640
2,223
432
12,930
2,191
391
11,220
2,156
353
9,510
1,047
157
8,650
1,862
257
6,920
1,816
230
5,190
1,768
205
3,460
1,717
183
1,730
6,608
645
PV
26819
NPV
-6920
NPV
-8528

Scrap
Value

3,306
3,405
3,507
3,612
3,720
3,832
3,947
4,065
4,187
4,313
4,442
4,576
4,713
4,854
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
6,524
6,720