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
DIPLOMA IN LOGISTIC AND SUPPLY CHAIN MANAGEMENT PB 201 ENTREPRENEURSHIP PREPARED BY : NUR AMIRA BINTI MD LAZI MATRIX NUMBER : 30DLS12F1030 PREPARED FOR : MISS NORSHIMA BINTI SHA’ARI TITLE : STUDENTS ARE REQUIRED TO FIND ONE LOCAL OR INTERNATIONAL SUCCESS ENTREPRENEUR TAN SRI TATPARANANDAN ANANDA KRISHNAN
Premium Malaysia Kuala Lumpur Sri Lanka
Brittany Kragerud Joe Harris Entrepreneur 489 Assignment 3 Assignment Instructions. 1. After interviewing Jordan Carter it seems to me like he is very entrepreneurial and driven. It was funny giving him the test because his results had a little of each‚ but the most answers he had was at being a fantastic manager. After I read him the results he was very confused and shocked because I believe he thought that he was going to hear something differently even saying “what if I don’t agree with
Premium Entrepreneurship Entrepreneur Insurance
Ocean Carriers Case Ocean Carriers uses a 9% discount rate. 1. Do you expect daily spot rate to increase or decrease next year? Daily spot rates are expected to decrease next year because 63 new vessels are scheduled for delivery over the next year and imports of ore and coal would most likely remain stagnant over the next two years. Imports of iron ore and coal and the number of vessels available are two big factors of spot rates. 2. What factors drive average daily hire rates?
Premium International trade Net present value Cargo ship
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
Background Ocean Carriers Inc. is a shipping company specializing in the operation of capsizes bulk dry carriers. In January 2001‚ Mary Linn‚ the vice President of Finance for Ocean Carriers was evaluating the purchase of a new capsize carrier for a three years lease proposed by a motivated customer. The leasing contract offers very attractive terms‚ but no ship in Ocean Carrier’s current fleet met the customer’s requirements. In addition‚ this proposed contract is only for three years. Therefore
Premium Net present value
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
PURE FERTILIZERS As the youngest of five children in a family dependent on agriculture‚ Irfan Ahmed achieved far more than he could have dreamt of. Irfan Ahmed believes that we should be ready to do what it takes to serve the customers the way they want. After completing his graduation from Karachi University he started doing job in a pharmaceutical company for Rs. 35‚000 a month in HR department. Irfan found himself incapable of handling manpower issues and quit the post. He soon found another
Premium Agriculture Nitrogen Manure
CREATIVITY IN BUSINESS Promote regular team brainstorming sessions‚ which allow employees a chance to produce a high quantity of ideas. Once you have a large amount of ideas‚ analyze and choose those ideas that are of high quality. Create an encouraging work environment. If employees see that their ideas are encouraged and accepted‚ they will be more likely to be creative‚ leading to potential innovation in the workplace. Create a collaborative work environment. Creativity and innovation can
Premium Marketing Internet marketing Web search engine
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