REPORT ON 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
Premium Net present value
1856‚ Australian inventor James Harrison‚ used ammonia on experimental basis but used ether in the equipment that was previously constructed. Then‚ in 1902‚ Willis Carrier‚ the “Father of Air-Conditioner” designed humidity control for a new air-cooling system and pioneered modern air conditioning. Willis Carrier also originated the carrier equation upon which the psychometric chart and all air conditioning is based. Later‚ in 1906‚ Stuart Cramer‚ engineer in North Carolina‚ invented a ventilating
Premium Air conditioning HVAC Water
4.0 CARRIER’S IMMUNITIES FROM UNSEAWORTHINESS OF SHIP According to Hague-Visby Rules‚ Article 1 (a)‚ carriers include owner or the charterer who enters into a contract of carriage with the shipper. The carrier will not be liable for losses or damage to cargo if it falls under any of the circumstances stated in the carrier’s immunities. First‚ in the Art IV rule 1 if the carriers exercises due diligence‚ immunities will be given only against latent defects that is not discoverable on a reasonable
Premium Causality English-language films Legal terms
Cristina Provenzano Professor Polgar February 21‚ 2011 Descriptive Essay The Beach As the sun peeked over the horizon announcing the beginning of another beautiful hot summer day‚ Lisa drove to the beach with a sense of excitement. She packed her bag for a day at the beach and a time when she had a little peace of mind. Enjoying the morning breeze caressing her face‚ Lisa sped down the highway to the voice of Taylor Swift booming throughout her speakers of her cherry red X6 BMW. She
Premium Sun Horizon
Case Study 1 – Ocean Carriers 1. The Capital Budgeting Decision Should Ms. Linn purchase the Capesize vessel? Assume that Ocean Carriers is a U.S. firm and is subject to 35% taxation. (Please see excel sheets) From our analysis it appears that Ms. Linn should not buy the Capesize vessel. The Net Present Value on the Ocean Carrier is not a positive number‚ a clear indicator that buying the vessels is not a good idea. The tax rate of 35% makes a lot of difference in determining this NPV
Premium Net present value
Guide for Case Analyses “Ocean Carriers” Objectives of case: The key objective is to develop an understanding of how discounted cash flow analysis can be used to make investment and corporate policy decisions. 1. Determine the value and net present value of a real assets; 2. Distinguishing between book value and market value; 3. Identifying and forecasting incremental expected cash flows‚ including initial and ongoing capital expenditures‚ investment in net working capital‚
Premium Net present value Cash flow Depreciation
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
The Beach The beach is one of my favorite places to go. It is where I would like to live one day. In my opinion‚ it is the best place to go on family vacations too. Everyone always has that one place that they always like to escape to‚ and mine is the beach. The beach is the ultimate cure for all of my problems. While I am there‚ all of my obligations are suddenly gone. There are three things that I love about the beach: the warm weather‚ shopping‚ and the places to eat. The first thing that I
Free English-language films Debut albums 2002 albums
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
was a ‘Ricci-year’: scholarly meetings in different places around the world‚ from Chicago (US)‚ over Macerata (Italy) to Taibei (Taiwan)‚ commemorated Matteo Ricci’s entry in China. It was exactly four hundred years since his arrival in the Portuguese settlement of Macao in 1582 and his entry into the mainland one year later. In 2001‚ there were new celebrations of Ricci‚ in Hong Kong and in Beijing‚ commemorating his definitive settling in Beijing in 1601. The year 2010 is again a ‘Ricci-year’‚
Premium Italy Giuseppe Garibaldi Naples