Ocean Carriers

A | Continue operating the cruise ship in the current area. | 10% | $1.0M | $0.9M | $0.7M | $0.7M | $0.7M | $4.0M |

constant over time. (Hint: You must consider likely changes in revenues and costs due to

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).

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

Smooth Sailing is a private company that operates one cruise ship. Recently, pirate activity in the area where the cruise ship operates has increased, thus affecting the cruise ship’s potential future cash flows. The cash flow decline has directly contributed to a decline in the overall fair value of the cruise ship.

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, the market will seemingly go up after two years. Therefore, ship owners should hope to sign short-term contract through using lower daily spot hire rate rather than locking low daily high rate for a long period.

9. (Ignore income taxes in this problem.) The Crawford Company is pondering an investment in a machine that

The spreadsheet shows that the new ship would be best utilized on the Tallinn-Helsinki run, where it replace the capacity of three older ships, the Regina Baltica, the Fantaasia and the Vana-Tallinn. The spreadsheet does not factor in the fixed costs associated with each boat, but it is a reasonable assumption that the fixed costs of the three boats that would be sold are going to be higher than the fixed costs associated with the one new boat. It is recommended, therefore to purchase the new ferry as the solver illustrates that the new ferry would deliver greater contribution margin to Tallink than the three older ferries that it would replace.

Gross income derived by a corporation organized in a foreign country from the international operation of a ship or ships if such foreign country grants an equivalent exemption to corporations organized in the United States.

The report is based on the case study in which Ali renovated and repaired old and used boats in his garage and then sells them to buyers once the boats are repaired and ready. He repairs one boat at a time. With the proceeds, the internet and other media sources, he finds the buyers for his boats. Also, through the proceeds he finds boats to repair and sell again. He wishes to open up his business in the near future. However, his friend has told him that he is already conducting business and is liable to pay the taxes and get registered. On the basis of Badges of Trade, VAT requirements and procedures, this report will identify whether Ali should get registered, as he is conducting business and whether he is to pay VAT or not.

In the article “Registration of Ships in Cyprus” Michael Chambers presented the essential information about eligibility criteria and ship registration procedures. Cypriot and European citizens may proceed with the necessary procedures and register their vessel on the Registrar of Ships. However, non-European citizens who wish to register a ship under the Cyprus flag they are obliged to incorporate a Cyprus Shipping Company. The incorporated Cyprus shipping company will acquire the ship in its name.

3. Jorge, a representative of the ship-owner, has read a recent correspondence from you regarding the Maritime Convention 2006. He is adamant it does not apply to The Inquest as the ship flies under the flag of the state of lesserregulation.

2013). Therefore, liner shipping companies must be extremely careful with ship investment decisions. Insufficient investment can reduction in market share and may lead to losing market position, while huge investment may affect the financial stability of the company. (Fan & Luo 2013).

Every firm would love to invest in shipping industry due to large profits involved. However this would seem easy but practically it is lot more difficult and virtually impossible to establish in container line business. The problem pertains to large capital investments in form of vessel and container procurements and risk of operating vessels. Even if we take the examples of biggest companies

In particular, this chapter includes an analysis of the technical characteristics of LNG and its transportation process on the one hand, and an analysis of the legal background focusing on chartering. More specifically, it provides a brief analysis of the definitions and the main characteristics of the Time Charter Parties (T/C hereinafter), and Voyage Charter Parties (VCP hereinafter). The remainder of the chapter is devoted to the presentation and discussion of the main chartering routines followed when trading a vessel under different charter-parties (C/P hereinafter) and special C/P forms.