Ocean Carrier Case Study Summary In order to accept the recently submitted leasing contract proposal‚ Ocean Carriers would have to purchase a new ship. The purchasing of a new ship is a considerable investment. We have analyzed whether or not Ocean Carriers should make this investment using Free Cash Flow and Net Present Value (NPV) analysis. Given the details of the contract‚ the forecasted daily time charter rates‚ and the costs data; we have concluded that Ocean Carriers should not accept
Premium Net present value Cash flow Depreciation
Ocean Carriers Inc. A Case Study By ab Introduction • Ocean Carriers Inc. owned and operated cape-size dry bulk carriers worldwide. • Major Cargo type : Iron ore. • Vessel sizes : 80000 DWT to 210000 DWT. • Cape-size carriers travel around Cape Horn rather than the Panama Canal due to size constraints. Operations Maintenance Maintaining Supplies And on board Stores Supply of Lubricants Cargo Operations Repairs Insurance Business Model • Mostly chartered
Premium Net present value Ship
(a) Statement of Problem. Ocean Carriers is evaluating a proposed three year lease of a ship. Currently‚ no ships in Ocean Carrier’s fleet meet the requirements of the customer. Since the new ship requires an investment of $39 million‚ Mary Linn‚ the Vice President of Finance for Ocean Carriers‚ needs to evaluate the proposal’s NPV and determine whether or not to accept the proposal by considering expected cash flows‚ tax implications‚ and future market conditions. (b) Statement
Premium Supply and demand
Introduction Continental Carriers Inc is a trucking company which specialises in transporting general commodities. Since its establishment in 1952 the company operates within the district of the Pacific Coast and from Chicago to various points in Texas. It was noted that the company maintains an overall low debt policy‚ whereby they obtain infrequent short term loans and avoid long term debt. Furthermore with the appointment of Mr. Evans as president‚ the company became more profitable and experienced
Premium Stock Financial ratio Stock market
Ocean Carriers Objectives • Forecast pro-forma cash flows for a project • Estimate project values using Net Present Value (NPV) • Conduct sensitivity analysis for the forecast inputs Setting • January 2001 • Customer offering attractive terms on 3-year lease for a capesize carrier • Would require purchase of new carrier since existing fleet does not fulfill customer needs • Should it be purchased? Industry Dynamics • Revenue Drivers • Outlook in the: –
Premium Generally Accepted Accounting Principles Net present value Cash flow
Continental Carriers‚ Inc. Advanced Financial Management Continental Carriers‚ Inc. (CCI) should take on the long-term debt to finance the acquisition of Midland Freight‚ Inc. for a few reasons. The company is heavy on assets‚ the debt ratio will only grow to 0.40 with the added $50M in debt. Also‚ the firm will benefit from an added $2M in a tax shield and be able to return $12.7M a year to its stockholders and investors‚ instead of $8.9M if equity is raised to finance the acquisition
Premium Stock Stock market
Negative Effects of Plastic Bags There are several issues on earth that need immediate attention; such as global warming and green house effect‚ air pollution‚ climate change‚ and plastic pollution. Current use of plastic bags and disposal‚ both not only create environmental problems‚ but also reinforce the perception of a wasteful society. Human beings invented plastic bags for the convenience of carriers and packers. However‚ plastic bags have become one of the today’s serious issues that need
Premium United States Environmental Protection Agency Plastic shopping bag Sea turtle
PLASTIC BAGS Introduction One of the most commonly used items in modern generation is the plastic bag. Sufficient‚ convenient‚ strong and cheap‚ plastic bags are seem to be perfect for marketing merchandise‚ foods‚ drinks and more. However‚ there are associated issues with the production‚ use and disposal of these bags which may not be known to most users but which are nonetheless extremely important especially to the environment. To fully understand the ecological footprint of plastic bags‚ determining
Premium Plastic shopping bag
In life we as a human species are given a bag of tools. Everyone’s bag may differ but we all will have one. In the poem Bag of Tools‚ R.L. Sharpe explained the purpose of that bag. In this inspirational poem he explains that each person’s purpose in this world will differ but as one we will all be working unknowingly to build out eternity. Given these tools you can make your life out to be extraordinary and helpful to the universe. Everyone has a unique talent. With your talent you can build a better
Premium Universe Explanation Time
feasibility of the paper bag manufacturing business as far as this very start up is concerned. King Paper Bag Manufacturing Company is going to be a small start-up by Carry John in Kampala‚ Uganda by next year-2015. This analysis therefore details the findings by the founder that were collected from his research in Uganda and also goes on to show how feasible the concept of paper bag manufacturing is in a market like Uganda. 1.1 Name of the proposed business King Paper Bag Manufacturing Company 1
Premium Packaging Paper Plastic bag