Table 4

Financial evaluation assumptions

ItemNumerical value
Ship price (ten thousand US dollars)New ship3,150
5-year-old ship2850
Ship purchase tax rate (tariff + value-added tax)23.17%
Freight rate (yuan/ton)48 yuan/ton
Discount rate8%
Vessel depreciationDepreciation period (year)Completed 8 years ahead of schedule
Residual value rate5%
Depreciation methodStraight-line depreciation
Exchange rate (US dollars to Chinese yuan)6.5
Ship's net weight capacity (10 thousand tons)7.9

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