Ocean Carriers Mary Linn

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    Ocean Carrier

    Q1. Marriott’s growth objective is to remain a premier growth company with preferred employer, preferred provider and the most profitable company, which means Marriott intend to outperform the average market. Considering the above information, Marriott’s financial strategies are consistent with its growth objective. To be more specific, firstly, Marriott actively manages hotel assets using syndication method with a fully integrated development process rather than passively own it. For example,

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    Ocean Carriers Case and Assumptions

    Case Study Questions Capital Budgeting In Practice 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

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    Aircraft Carriers in Wwii

    Aircraft Carriers in WWII Many of World War II’s greatest battles were fought at sea, making naval technologies crucial to all sides. Many kinds of ships, such as battleships, submarines, and aircraft carriers, had been used in previous wars, but the global nature of World War II made naval battles especially important. These vessels ranged from heavily armed warships to numerous support craft such as fuel ships and troop landing boats. Of all the ships used in the war, aircraft carriers were the

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    Oceans

    Oceans Name of student Name of institution Oceans About seventy-one percent of the planet is covered with water bodies most of which consists of the five major oceans namely: the Pacific, the Atlantic, the Indian, the Arctic and the Antarctic. The word “sea” is sometimes wrongly for “ocean”, but “sea” represents the saline water body surrounded by land. In terms of hydrosphere, the oceans cover

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    The Ocean

    The Ocean The ocean makes up around 70% of the Earth’s surface. It is divided into several separate oceans which interconnect bodies of salt water. The major oceans are the Pacific, Atlantic, Indian, Southern, and Artic Ocean. The ocean has many functions. It keeps the Earth’s temperature moderate by absorbing solar radiation. It is then stored as heat energy which is distributed around the globe by the ocean currents. This keeps the land and air warm during the winter and cools it down during

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    Ocean Carriers

    worldwide supply of capesizes by 11% and 5.4%, respectively. Furthermore the worldwide capesize fleet is relatively young – only 8 capesizes are at least 20 years old – there should be relatively few scrappings. For example Exhibit 5 of the Ocean Carriers case study shows the direct correlation between the number of shipments of iron ore and the average daily spot rate. From 1995-1996, the average spot rate fell from $20,149 to $11,730 and from 1997-1999, the average spot rate fell from $14,794

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    Ocean Carriers

    Ocean Carriers Case Study Q1. a). we expect the daily spot hire rates to decrease in 2001 and 2002 according to the forecast in exhibit 5. This decline in daily spot rates is also supported by the forecast in Exhibit 3 showing a decline in ordering bulk capsizes from 63 in 2001 to 33 in 2002. Spot hire rates tend to fluctuate depending on the highs and lows trading volumes in the market. So since according to the forecast the demand for Iron ore had a poor market outlook in 2001, the spot hire

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    Ocean

    Oceans are large bodies of saltwater. Life on this wonderful planet earth began in these huge bodies of water. Oceans are unique in this galaxy. No other planet on the Solar System has water on its surface. Oceans cover approximately 71 percent of our planet's surface and hold around 97 percent of the planet's water. There are five oceans and many seas on the planet. The five oceans are: the Pacific Ocean, the Atlantic Ocean, the Indian Ocean, the Southern Ocean and the Arctic Ocean. The Pacific

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    Holguin Ocean Carrier

    1- Ms. Linn should only purchase the $39,000,000 capsizes if the tax rate is zero % if its 35% it is not a good idea to do so. I came to this conclusion after doing an NPV/IRR analysis with both tax rate % using a 9% discount rate. The NPV with a 35% tax rate is negative 7,007,618 with 0% tax rate is positive 809,107. The IRR with a 35% tax rate is 6.01% with a 0% tax rate it is 9.34%. 2- Ms. Linn should not sale the ship for scrap value for 5 million instead she should do salvage value of

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    Ocean Carriers

    Case Study Questions Capital Budgeting In Practice 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

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    Ocean Carrier

    Analysis In order to make a recommendation to Mary Linn as to whether Ocean Carriers, Inc. should purchase a new ship we must first look at the net present value of the ship. In order to do this our team used the provided expected daily hire rates to calculate revenue which we expect to be for the lifetime of this vessel. The expected daily hire rate is the most accurate measure to determine future cash flows for the company. By using the annual operating days over the life of the new vessel we

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    Ocean Carrier

    2. Suppose a customer buys an iPhone from Apple for $500 on January 1, 2010. The cost of the iPhone to Apple is $350. Assume that the customer is entitled to upgrades over the next two years. Use the following financial statement effects template (FSET) to illustrate the financial statement impacts for Apple of the customer's iPhone purchase on the date of the initial purchase and at the end of each of the two years following the initial purchase under generally accepted accounting principles (GAAP)

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    Mary

    Accession of Mary Mary’s accession generally accepted and favoured by the English people, most likely because she was a legitimate successor There was the issue with Lady Jane Grey – Northumberland attempted to make his daughter-in-law, Lady Jane Grey, the successor after Edward. She was Queen for nine days, but was deposed and Mary carried on as legitimate successor. Faction Mary was determined to fill the council with loyal people, but she couldn’t prevent all rivalries! = Gardiner vs. Paget

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    Ocean Carriers

    Memo OCEAN CARRIERS Date: January 2, 2001 To: Mary Linn, Vice President of Finance From: Thomas Harper Subject: Investment in New Capesize Bulk Ship After analyzing the commissioning of a new capsize ship for a three-year lease, my team has come to the conclusion that Ocean Carriers should move forward with the investment only if it is built and registered in our Hong Kong office. There were key assumption my team and I made in our analysis and they are as follows:

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    Ocean

    1.5 million tons of plastic waste per year (Baskind). Assume that every empty bottle makes its way to a garbage can. Plastic waste is now at such a high volume that vast eddies of current-bound plastic trash now spin endlessly in the world's major oceans (Baskind). This issue holds a great risk to marine life endangering animals such as birds and fish, that accidentally mistake our garbage for food. Nearly 90% of plastic water bottles are not recycled, instead take thousands of years to decompose

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    Ocean

    tides. Tides are the daily or twice daily rise and fall of the oceans. Tides are caused by the gravitational pull of the moon and sun on the ocean. The rise and fall of tides causes water to move in and out of estuaries, bays and harbors. This movement is called a tidal current. When the tide is rising, water flows from the ocean into the bay creating a flood current. When the tide falls, water flows from the bay back into the ocean creating an ebb current. The highest tides, called spring tides

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    Ocean Carriers

    Ocean Carriers Inc. was approached in January of 2001 with a contract proposal for the leasing of one of their ships for a term of 3 years beginning in 2003. Ocean Carriers currently has no ship to accommodate the customer. To commission the construction of a new vessel would take 2 years from start to completion. The average rate in the spot market is $22,000 per day. Ocean Carriers deployed a younger fleet than average carriers and generally earned a 15% premium over the average daily rate

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    Ocean's Carrier

    a contract of only 3 years. Based on the calculation of the cost of construction against the value of the contract, it is recommended that Ocean carriers should not go ahead with the construction. However, if a strategic alliance can be created with another carrier to lease their vessels, Ocean Carriers should accept the contract. What does Mary Linn has to consider? 1. Evaluation of the amount of expected returns over the life of the present contract. 2. Evaluation of the value of the

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    The Beach Carrier

    Entrepreneur 510 Case 1 Summary Le Xu 102-11-211 The Beach Carrier What is the nature of the product? What are its strengths and weaknesses? Beach Carrier is multifunctional bag in which a consumer can carry lots of things that will be used for a day while spending time on the beach. The bag can also be used to transport difficult-to-carry items, such as ski boots. The strengths of Beach Carrier are its big storage space, better mobility and lower price comparing with two other competitive

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    Ocean Carriers

    Ocean carriers has been approached by a customer who is offering attractive terms for a three year ship lease. However, there is no existing ship that meets the customer’s needs, so Mary Linn, Vice President of Finance, must decide if we should purchase a new ship that will meet the customer’s demands for $39 million. Since the lease is only for three years we need to analyze if by continuing to operate the ship for other charterers will be a profitable project for Ocean Carriers. It is the company’s

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    Continental Carriers

    Continental Carriers Inc., established in 1952, is a regulated general commodities motor carrier whose routes ran the length of the Pacific Coast, from Oregon and California to the industrial Midwest, and from Chicago to several points in Texas. Continental Carriers struggled early, experiencing little growth, until the mid-1970’s. Continental needed help in reducing operating costs and also sought improvement in terminal facilities. John Evans, president of CCI, made this possible. Entering CCI

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    Aratiles, Muntingia Calabura Linn. as Anti-Inflammatory

    EFFECT OF THE AQUEOUS EXTRACT OF MUNTINGIA CALABURA LINN. ON THE BLOOD GLUCOSE LEVELS OF INDUCED DIABETIC MICE AT FASTED STATE     Research Proposal     C-2     Lim, Phoebe Lim, Syndel Lipana, Kirk Liu, Johanna Llamas, Alay Llego, Nasreen Lopez, Camille Lopez-Dee, Bernadette Lorenzo, Adrian Lorilla, Richardson Lu, Pei-Chei           Lucila, Ana Marie Lustre, Alexis Lorenz Macabagdal, Jesmarie Macalma, Glenn Macapagal, Justin Madrid, Bianca Malabanan, Michelle Malaca

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    Ocean Carriers

    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

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    Ocean Carriers

    Case2 Ocean Carrier Question 1 Daily spot hire rates seems to have a linear relationship with both charter rates and iron ore shipments. If iron ore shipments increase, so do the charter rates for the capsize dry bulk ships. Traditionally, when charter rates rise, spot hire rates will increase even higher than charter rates. A regression analysis, shown in table 1, was used to forecast future iron ore shipments. The estimated shipments for 2002

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    Ocean Carrier

    [pic] [pic] Worthington Group structures Unincorporated Organizations (Contractual Business) according to the United States Constitution, Article I Section X, The Right To Obligation of Contract. We have compiled this additional information regarding 'contracts' for the benefit of those who are presently involved in contracts of one kind or another, or contemplate such. The Law of Contract has existed from the beginning, even Adam had a verbal contract with God, 'watch over the Garden of Eden'

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    Ocean Carriers Q&a

    Question 1 Assume that Ocean Carriers uses a 9% discount rate. Do you expect daily spot hire rates to increase or decrease next year? Daily hire rates were determined by supply and demand, the expected number of ships available percentage increase (supply side) more than the percentage increase of demand for bulk capsizes ( demand side) , therefore daily spot hire rates is expected decrease in next year ( year 2002). For demand side: As per Exhibit 6, forecasted demand in year 2002

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    Oceans

    case of Ocean Carriers, protagonist Mary Linn must decide upon the best alternative regarding the building of a capesize carrier that a client has requested. Her choices in the matter include: 1) Building the ship and salvaging it after 15 years for a $5 million profit 2) Building the ship and keeping it in operation for its full 25 year operating life 3) Denying the request and not building the ship at all. Through my research I’ve found that the best decision for Mary Linn and Ocean Carriers would

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    Ocean Carriers

    Ocean Carriers: Case Study MBA 540 Fall 204 Janelle Roche King Quaidoo Suzanne Ekstrom Net Present Value: 15 Year Evaluation if the United States with a 35% Taxation Net present value is used in order to determine the present value of an investment by the discounted sum of all cash flows received from a project. In this case this would be the calculation of the single project capital budgeting for Ocean Carriers Inc. and a purchase of 15 year operation vessel. This 15 year time span would begin

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    Ocean Carriers

    Case Ocean Carriers Investment calculations If we make calculations assuming that Ocean Carriers is a U.S. firm subject to 35% taxation, net present value for the 39 million dollar investment is approximately -5,55 million dollars. Therefore on the basis of my calculation, the investment appears to be unprofitable. Obviously the conditions are far better if Ocean Carrier resides in Hong Kong and does not pay taxes for its overseas profits. In that scenario the investment has approximately net

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    Case Ocean Carriers

    39000000 1291200 Pinja Ruonala 241364 Case Ocean Carriers Since the consulting firm fee (200 000 USD) and internal marketing study expenses (150 000 USD) already occurred and thus are sunk costs, they are not taken into account in the investment calculations. Those expenses will realize, no matter whether the investment will be done or not, so they are not relevant. Net present value calculation was done in order to give a recommendation for Ocean Carriers whether to purchase of the $39M capsize. Only

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    Ocean Carriers

    ,同相船約期與致大動波跌漲的船貨現知得們我,格價均平的船約期與船貨現期長察觀五表據根 。 價折的 均平業 產於低 收吸須 必輪貨 舊老, 格價的 金租日 響影會 也齡船 的輪運 貨,外 此 。面給供節調來船舊廢報是或船新製訂,求需場市據根會司公運航。況狀濟經球全於決取要主度 強求 需 此 因 ,料 物原 之 需 所業 產 礎 基 等 炭煤 及砂 礦 鐵 載裝 輪 貨 裝 散 的 於 由 ,說 來 船 約 期 對 析分場 市船貨 現 翔偵黃 傑 淞張 修振 黃 玲美徐 慧 淑吳 義正 林 85% : Case 2 Ocean Carriers 33 = 643 ( 63 噸 公萬百 2002 612 + (612 − 552) × 2000 440 552 2001E 436 612 5.14% 2002E 445 643 2001~2002 2.06% 5.14% ) 2.06% 於由 。 。 一題問 (降下 是應率 費金租日 船貨現 的年 期預們 我此因 ,求需 於大給 供 ) 了長 成只面 求需但 , 了長 成面給 供的運 貨裝散 年 知得

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    Ocean Carriers

    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: 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

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    Ocean Carriers

          Financial Management  CASE STUDY 2:  OCEAN CARRIERS  April 20, 2015  Emily Chen (Ro4749035) / Naree Klungpremchitt (R03749057)  Christopher Loo (Ro3749038) / Julien Minard (Ro3749036  Q1: What Factors Drive Average Daily Spot Hire Rates? Average daily spot hire rates are influenced by supply and demand of the vessels. Demand of vessels was determined by market condition. There will be an increase in demand for iron and coal, so as capesize fleets when there is strong economy

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    Oceans Carrier

    Ocean Carriers Ocean Carriers Inc. was approached in January of 2001 with a contract proposal for the leasing of one of their ships for a term of 3 years beginning in 2003. Ocean Carriers currently has no ship to accommodate the customer. To commission the construction of a new vessel would take 2 years from start to completion. The average rate in the spot market is $22,000 per day. Ocean Carriers deployed a younger fleet than average carriers and generally earned a 15% premium over the average

    Words: 1432 - Pages: 6

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    Ocean Carrier

    Year | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Age of Ship |   |   | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | Operation | SALES | Daily hire rate |   |   | 20,000 | 20,200 | 20,400 | 18,714 | 17,283 | 17,481 | 17,682 | 17,886 | 18,092 | 17

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    Ocean

    its importance.    Growing up on the small three mile long, island of Green Turtle Cay, I have always had a love for the ocean and its inhabitants. From the time I could walk, I found myself tagging along with my big brother and father in the boat. However it wasn’t until my second week of work experience at Brendal’s Dive Center that I realized my true love for the ocean and viewed it from a different perspective.  We arrived at the dive spot we had been previously been to, but this time I was

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    Ocean Carriers

    Michael Depersia Ocean Carriers needs to evaluate the decision to commission a new capesize carrier. Mary Linn, Vice President of Finance, needs to decide if this is a profitable decision for the company. In determining whether Ocean Carriers should purchase the new capesize carrier for the potential customer, we completed a net present value analysis of the project. In order to do this we need to take many things into account including, but not limited to, depreciation, opportunity costs and networking

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    Ocean Carrier Case Solution, Harvard Business Case

    Ocean Carriers November 2015 EXECUTIVE SUMMARY Due to an attractive lease agreement proposed by a larger client, the investment department has conducted an extensive evaluation of the possibility to invest in a new $39 million capesize carrier. This material should be distributed

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    Ocean Carriers

    Case 1 – Ocean Carriers Kevin Gordon 2543984, Camiel Hamstra, & Marloes Schrijer 2518578 Ocean Carriers is a shipping company with offices in New York and Hong Kong. In 2001, Vice President of Finance, Mary Linn, has to decide whether Ocean Carriers should commission a new capesize carrier to meet the specific requirements of a customer. The proposed contract, however, is only for three years. Linn needs to decide if the considerable investment in a new ship is worth it, given the future

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    Case Ocean Carriers

    Case 1: Ocean Carriers   Our first case study is entitled Ocean Carriers (HBS Case No. 9‐202‐027) by Erik Stafford et al. Please go to the Harvard Business Publishing website http://hbsp.harvard.edu . The case is copyright‐protected and can be purchased after registration. Please register at the Harvard Business Publishing website with a student account. After login, make use of the following link: http://cb.hbsp.harvard.edu/cbmp/access/42497623. Integrate answers/discussions to the

    Words: 252 - Pages: 2

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    Ocean

    Earth’s Dynamic Ocean and Atmosphere II Worksheet From Visualizing Earth Science, by Merali, Z., and Skinner, B. J, 2009, Hoboken, NJ: Wiley. Copyright 2009 by Wiley. Adapted with permission. Part 1 Figures 1 and 2 depict two important features of the world ocean. Figure 1 shows one way in which the ocean basins filled with water and Figure 2 represents one of the many mineral sources contributing to ocean salinity. [pic][pic] Figure 1 Figure 2 1. Explain the origin of ocean water in 150 words

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    Ocean Carriers

    rate avg. 3yr charter rate iron ore vessel shipments 0.18 -0.38 fleet size 0.98 0.86 Table I Correlation Coefficient between iron ore vessel shipment, fleet size and average spot rate  Should Ms. Linn purchase the $39M capsize? Hong Kong or the U.S? (Ocean Carriers uses a 9% discount rate.) To analyze these two scenarios, we choose to calculate net cash flow and IRR for every year. The detail calculation is attached in the appendix and the methodology of this approach is enlisted

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    Ocean Carriers

    the Baltic Exchange in London. The index provides an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a timecharter and voyage basis, the index covers supramax, panamax and capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain. 20 Figure 17: Freight - Baltic Exchange Dry Cargo Index 14000 12000 10000 8000 6000 4000 2000 0 Jan/04 May/04 Sep/04 Jan/05 May/05 Sep/05 Jan/06 May/06

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    Ocean Carriers

    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

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    Ocean Carrier

    Ocean Carriers According to Exhibit 3, the number of vessels is set to increase from 2001 to 2004. The iron ore shipment imports stay relatively the same amount, so we expect the daily spot rates to decrease over the next few years. The daily hire rates are driven by supply and demand. The historical changes in these rates have been related to the change of the bulk shipments. The supply is equal to the currents vessels plus new ships minus scrapings. Demand for dry bulk capesize is determined

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    Carrier

    a 5-year period starting from... Ocean Carriers Assumptions and Methodology Based on an NPV analysis considering multiple scenarios, Ocean Carriers should commission the construction of a new capesize carrier in the event they are operating with no corporate tax and chartering the ship for its entire 25 year life. Such is the recommendation assuming the forecasted hire rates and estimated costs are accurate over the long-term. However, if Ocean Carriers chooses to adhere to their policy of

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    Ocean Carriers

    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

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    Ocean Carriers

    Ocean Carriers’ Case Spring 2012 Ocean Carriers Ocean Carriers Inc. owned and operated capsized dry bulk carriers that carried iron ore worldwide. The company’s vessels were typically chartered on a “time charter” basis for a period of years. The charterer paid Oceans Carriers a daily hire rate for the entire length of the contract, determined what cargo the vessel carries, and controlled where the vessel loaded and unloaded. Ocean Carriers supplied a vessel that complied

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    Ocean Carriers

    Case 1: Ocean Carriers We think that daily spot hire rate will likely decrease next year. There are two reasons. First, there are 63 new vessels scheduled for delivery in 2001 to increase the supply of vessel and only few old vessels need to be retired, while the demand will not increase because imports of iron ore and coal would remain stagnant over next two years. Second, exhibit 5 shows that avg. spot rate of 2000 was higher than the rate of previous years and avg. 3-yr charter rate. In addition

    Words: 761 - Pages: 4

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    Ocean

    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,

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