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
Premium Cash flow Net present value Weighted average cost of capital
help provide the proper service quality in customer service sector and then apply to her future career. 1.2 Reason for choosing the airline industry Airline industry is a field which needs to handle people from all over the world especially in Hong Kong which is an international city. So‚ choosing the airline industry for the topic is because the service quality is very important in this industry. Due to the dynamic environment and increasing demand of better service from the customer‚ it is a
Premium Airline Quality of service Avianca
2. Definition of Social Policy Social policy primarily refers to guidelines and interventions for the changing‚ maintenance or creation of living conditions that are conducive to human welfare. Thus‚ social policy is a part of public policy that has to do with social issues. More specifically‚ it also considers detailed issues in policy and administration of social services‚ including policies for health‚ housing‚ education and social work‚ and needs and issues affecting the users of services
Premium Primary education Secondary education High school
Sales and selling strategy analysis: Prestige Watch – Omega Watch Hong Kong Introduction Over the past decades‚ wearing prestige watch has been a sign of being successful and wealthy‚ together with wearing jewelries and riding luxury vehicles. Omega watch‚ being one of the most representative prestige watch brands under the world’s top watch manufacturing group‚ Swatch Group‚ this article discussed the current sales approaches‚ forces and difficulties. It concluded with appropriate actions
Premium Marketing Sales
society. So through text‚ Hong Kong food literature‚ traces of different authors‚ we can have a more consummate understand on the situation of Hong Kong society. Moreover‚ Hong Kong is an international city; also it is a decolonized place of Britain. The characteristic of Hong Kong culture‚ the identity of Hong Kong citizen is always a hot topic. In the decade‚ post-modern has become a new verb to describe Hong Kong. So‚ this treatise is going to find out if Hong Kong is in post-modern period and
Premium Hong Kong Bruce Lee Postmodernism
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
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
Maids to Order in Hong Kong: Stories of Migrant Workers by Nicole Constable Nicole Constable‚ in Maid to Order in Hong Kong: Stories of Migrant Workers describes the physical and psychological lives of those domestic workers in the homes of Chinese in Hong Kong‚ their attitude towards their own lives and work‚ and the attitudes of the workers and the Chinese toward one another. Constable’s primary purpose‚ from a scholarly perspective‚ is to document the particulars of the lives of these
Premium Domestic worker Maid Migrant worker
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 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