case - Calendar Year 2000 2001 2002 Event Year 1 2 Age of...

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Calendar Year 2000 2001 2002 Event Year 0 1 2 Age of Ship Capital Investment −3900 −3900 Depreciation Accumulated depreciation Year-end book value of the ship Working capital Capital expenditure survey Depreciation survey Accumulated capital expenditure Total book value Expected daily hire rate Expected daily operating cost Maintenance days Operating revenue Nominal operating costs EBITDA Pre-tax earnings (EBIT) Tax expense (35%) Tax expense (0%) After-tax earnings USA After-tax earnings Hong Kong Tax shield USA Tax shield Hong Kong New vessel project analysis reflecting inflation and assuming straightt-line depreciation ($ thousands) USA 2000 2001 2002 Capital investment and scraping (ship&survey) −3900 −3900 Disposal (sell the ship after 15 years) Change in working capital Operating revenue Operating cost Capital expenditure −3900 −3900 Tax expense (35%) Operating cash flow Net cash flow 25 years −3900 −3900 Net cash flow 15 years −3900 −3900 Present value (9%) 25 years −3900 −3578 present value (9%) 15 years −3900 −3577,981651 Net present value (NPV) 25 years −4 948,74 kr
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Net present value (NPV) 15 years Cash flows and present value of proposed investment in USA ($ thousands) Hong Kong 2000 2001 2002 Capital investment and scraping −3900 −3900 Disposal Change in working capital
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