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: –
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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
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Nowadays‚ the competition among airplane industries is very tough. According to Daniel Chan (2000)‚ with just about two years to go to the turn millennium‚ air wars over Asia are hotting up‚ with some of the world’s biggest airlines engaged in intense over Asian skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry. A lot of airplane companies come out with different strategies to make their company better than their
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Overview Our economy emerged from the recession back in 2009; however‚ the economy didn’t grow much since then. According to the Bureau of Economic Analysis‚ gross domestic product (GDP) for the first quarter of 2011 grew only 0.4 percent while the second quarter grew at 1.3 percent. The increase in the second quarter can be attributed to a decrease in imports of petroleum‚ auto‚ and engines due to the earthquake in Japan‚ an increase in federal spending for national defense‚ and increase in business
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Are you interested in jobs that require athletic or mechanical ability‚ working with objects‚ machines‚ tools‚ plants or animals‚ or being outdoors? You enjoy working with your hands‚ tools‚ machines‚ and things that are practical‚ mechanically and physically inclined. Careers you would enjoy • Architecture • Chef / F&B / Hospitality Management • Engineering • Information Technology • Mechanical / Automobile Engineering • Music • Pharmacy • Pilot / Aviation • Veterinarian Are
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Research Proposal Topic area: Low Cost Carrier Discussion on price perception and service satisfaction would affect the development of Low Cost Carriers in Hong Kong airline industry Introduction There are four airlines in Hong Kong which are Cathay Pacific‚ Dragonair‚ Hong Kong Airline and Hong Kong Express. Cathay Pacific reveals merger-driven consolidation that Dragonair became a member of Cathay Pacific Group in 2006. On the other hand‚ HaiNan Airline acquired both Hong Kong Airline and Hong
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Pets as carriers of soil inhabitant microbes into our homes GIZELL VASQUEZ Biology department‚ Pathogenic microbiology‚ Crosby Jones‚ Angelo State University‚ San Angelo‚ TX 76909 There are approximately 78.2 million owned dogs in the United States (1)‚ and according to the United States government the current population of the nation is 308.7 million. The portion of dogs to humans is 4:1. These statistics are of importance because these pets physiologically observed their environment by smell
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NPV Analysis. 4 Table 3: Estimation of Resale value of Carrier @15th year 7 1. Introduction 1.1 Executive Summary Ocean Carriers Inc. (OCI) is an International provider of Marine transportation services mainly focussing on Dry Bulk commodities mainly iron ore and coal. OCI has offices located in New York and Hongkong. One of OCI’s customer’s is keen in committing for a 3 year lease starting from 2003 for a large dry bulk Capesize carrier of capacity 180‚000 DWT in order to fulfil its own interests
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OCEAN CARRIERS CASE 1) Should Ls Linn purchase the $39M capsize? Make two different assumptions. First‚ assume that Ocean Carriers is a U.S. firm subject to a 35% statutory (and effective) marginal tax rate. Second‚ assume that Ocean Carriers is domiciled in Hong Kong for tax purposes‚ where ship owners are not required to pay any tax on profits made overseas and are also exempted from paying any tax on profit made on cargo uplifted from Hong Kong‚ i.e.‚ assume a zero tax rate. The
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OCEAN CARRIERS ANALYSIS DATE: 8/29/2007 TO: MS MARY LINN CC: PROF. TOM MILLER FROM: RYAN DALE SEELKE RE: DECISION ON CAPE SIZE CARRIER PRIORITY: [URGENT] Ms Mary Linn‚ After careful cash flow analysis and a discount rate (WACC) of 9%‚ commissioning a capsize carrier for 25 years is the only appropriate option for our firm. However‚ if the discount were instead 10%‚ both options would fail the NPV test by yielding negative results. I make this recommendation after thorough analysis of
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