purchase the capsize carrier because the NPV is negative. a. Incremental earning forecast 1. Operating Revenue From the following Exhibit‚ We can see that from year 2003 to year 2007‚ from year 2008 to year 2012‚ and from year 2013 to year 2017‚ 8 days‚ 12 days and 16days is separately used to repair. The annual operating revenue = expected daily hire rate * (365- numbers of days for repair) 2. Operating Cost The annual operating cost = daily operating cost * 365 Because the
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CAPESIZE PURCHASE FOR OCEAN CARRIERS Introduction The purpose of this report is to evaluate whether Ocean Carriers Inc. should immediately commission a new capesize carrier that would cost $39 million‚ and would be completed two years hence‚ in order to finalize a lease of the ship for a three-year period with a potential charterer in very good faith. The contrasting tax regulations between the two countries where the company locates its office‚ and the different cost-benefit circumstances under
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When comparing the airlines‚ three factors must be considered. The financial state of the company now‚ the business structure now‚ and the future outlook of the airline. The airline that clearly demonstrated balance when compared with its competitors is United Airlines. While it is not the best at every category‚ it is competitive in areas such as profit margin and debt-equity ratio. United also was very dominant in most of ratios that didn’t concern itself with covering liabilities. United stands
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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
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THE BEACH CARRIER CASE STUDY The Beach Carrier is a new product concept developed by Mary Ricci. It is a large‚ lightweight‚ durable bag that is designed to carry everything required for a day at the beach‚ including a chair. The Beach Carrier can be folded down to a 12-inch by 12-inch square for easy storage when not in use. It comes with an adjustable strap and various-sized pockets for carrying all types of items to the beach or other outdoor activities (i.e. concerts‚ picnics‚ and barbecues)
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Airline Industry Analysis Page 1 of 15 Memorandum Date: Subject: To: From: July 13‚ 2009 Airline Industry Analysis Dr. Matt Ford Adam Brown‚ Radmila Gogzheyan‚ Greg Huwel‚ Marie Meininger‚ Josh Riedel‚ Christina Ryan Introduction The following is an analysis of the airline industry. Using collected information and Porter’s “Five Forces” model‚ we will provide information about the attractiveness of the airline industry and provide a recommendation based on that information. Industry Background
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Ocean Carriers Case Expectations for Daily Spot Hire Rates Next Year Iron ore and coal imports will most probably decrease the upcoming year With the increasing supply of vessels should result in a market surplus By creating this surplus‚ prices will be driven down‚ since we will have limited demand and suppliers competing Average daily rates‚ based on historical numbers‚ have a direct relationship with the number of shipments. What Factors Drive Average Daily Hire Rates? u
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to reflect the higher production costs and extra value added features provided for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs‚ and about giving customers clear reasons to prefer the product over the other‚ less differentiated products. For the company to be able to outperform its competitors and earn above average returns‚ the price charged for the differentiated product must exceed the cost of differentiation. Companies that
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to raise its fair‚ as there is less competition in the Northeast (where AirTran serves) and major airlines have paired off leaving only five major players (Huffington post‚ 2010). Further promoting a fare increase is SWA’s refusal to charge for baggage. Although‚ this is a great sales tactic‚ it provides no source of revenue‚ resulting in a fare increase that would compensate for the increased costs of operating internationally. Even though‚ SWA will gain the Atlanta hub with its business travelers
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I. INTRODUCTION A. Introduction U.S. Flightways (USF) is a large-sized airline which is publicly traded and has 80.000 employees. It serves more than 50 countries and 250 destinations. Latest airline related measurements show that the Available Seat Mile for USF is 169.9 and the Revenue Passenger Mile is 138.4. The Passenger Load Factor shows 81.5 and The Cost per Available Seat Mile is 11.3 cents per mile‚ whereas the Revenue per Available Seat Mile shows 10.7 cents per mile. USF has a total
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