Introduction Ocean Carriers Inc. is a shipping company specializing in the operation of capsizes bulk dry carriers. In January 2001‚ the vice president of finance for Ocean Carriers was evaluating a contract proposal. In the proposed contract‚ Ocean Carriers would lease one ship to a client for a three year time frame. The customer would begin utilizing the ship in 2003. In 2001‚ Ocean Carriers did not have a ship that would meet the needs of this customer‚ and thus was considering purchasing a
Premium Net present value Depreciation Present value
November 9‚ 2004 Mary Linn Vice President of Finance Ocean Carriers Re: 180‚000 DWT Vessel Proposal Dear Mary: Our analysis of the proposal for the construction of a new 180‚000 DWT vessel has brought us to the conclusion that the project should not be undertaken. Our recommendation and decision is based on a discounted cash flow analysis of expected future cash flows from the vessel that produced a net loss for the project of $7‚201‚639. Included in this recommendation are a number
Premium Net present value Cash flow Discounted cash flow
and Valuation Case Analysis Ocean Carriers March 23‚ 2011 Executive Summary Industry Overview Capesize dry bulk carriers provide shipping services worldwide. Due to their size‚ Capesize carriers must sail around Cape Horn in order to travel between the Atlantic and Pacifica Oceans – the ships are too large to utilize the Panama Canal. In January 2001‚ there were 553 capesize vessels in service throughout the world. Demand for dry bulk carriers is determined by the world economy
Premium Ship Depreciation Expense
Ocean Carriers Case Study Submitted by Fozia Abid Maryam Noor Nadia Farooq Umar Farooq Hamza Tariq Muhammad Mohsin Lahore School of Economics Ocean Carriers Report The fragmented shipping industry is one of the most essential industries for continuous globalization and growth; industry prospects are surprisingly stable in contrast to the normal logistics businesses that are highly cyclical. The factors that drive average daily hire rates are the age of vessels‚ market condition‚
Premium Supply and demand
Dongyeon Kim 1408392 Di Roberto Matteo 1681386 Gutiérrez Agustina María Manuela Rinaldi Claudia Valeri Stefano 1672146 Case Study: Ocean Carriers Corporate Finance Class 16 Group Name: Soul Analysts Ltd Executive summary Ocean Carriers is contemplating the opportunity of stipulating a 3-year leasing contract that would require commissioning the construction of a new vessel. In the short term applied hire rates are decreasing‚ just as they should be on the recovery side starting
Premium Net present value
Financial Management Prof. Randy Fisher Case Study Questions: Ocean Carriers These questions relate to the Ocean Carriers case in your course packet. You can find the data for this case on the course website in a spreadsheet named: Ocean Carriers Exhibits.xls. This case provides the opportunity to make a capital budgeting decision by using discounted cash flow analysis to make an investment and corporate policy decision. Ocean Carriers is a shipping company evaluating a proposed lease of a ship
Premium Net present value Free cash flow
the Ocean Carriers Group is to evaluate the potential revenues and expenses of commissioning a new capsize ship for cargo transportation in order to meet a received demand for lease. A recommended approach would consist in analyzing the expectations for the world economy‚ trends in world trade and potential contracts; however‚ an estimated time of service should be assigned in order to predict future cash flows. Summary of facts In January 2001‚ Mary Linn‚ vice president of Finance for Ocean Carriers
Premium Net present value Cash flow Depreciation
LNG CARRIERS History The first LNG carrier Methane Pioneer (dwt 5034 tons) left the Calcasieu River on the Louisiana Gulf coast on 25 January 1959. Carrying the world’s first ocean cargo of LNG‚ it sailed to the UK where the cargo was delivered. Subsequent expansion of that trade has brought on a large expansion of the fleet to today where giant LNG ships carrying up to 266‚000 m3 are sailing worldwide. At the end of 2005‚ a total of 203 vessels have been built‚ of which 193 are still in service
Premium LNG carrier Natural gas Petroleum
1) Should Ms 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. Answer With 35% tax in the US we have
Premium Hong Kong
1. According to research‚ most respondents aware of a minimum charge of 5 pence on all single-use carrier bags. However‚ most young people were not aware of the charge‚ which is the number of students taking up in these age groups‚ who may only just studying in school and go shopping infrequently. On the contrary‚ a large number of old people were aware of the charge due to often buying groceries and everyday items from shops. 2. This bar chart compares the proportion of respondents of both
Premium Plastic shopping bag