Ocean Carriers Essay

3. Estimate the project’s NPV. Would you recommend that Tucker Hansson proceed with the investment?

The film The Sea Inside shares the heart warming real life story of a man named Ramon Sampedro. At the young age of twenty-six he suffered an accident while diving into shallow waters of the ocean that left him a quadriplegic. Now at the age of fifty-four, Ramon must depend on his family to survive. His older brother Jose, Jose’s wife, Manuela and their son Javi do their best to take care of Ramon and make him feel loved. Although Ramon is extremely grateful to his family and friends for their help all these years, he has come to see his life as aggravating and unsatisfying. He wishes to die with the little dignity he has left in his life. However, Ramon’s family is dead set against the thought of assisted suicide and the

Since scenario 1 has a negative NPV, we recommend Ocean Carriers to not invest if there is a 35% tax rate in the US. In scenario 2, where the ship is built in HK with a 0% tax rate, then we recommend that Ocean Carrier invest in the ship. This analysis shows that working the ship at a 35% tax rate will not yield a profit on the investment even 25 years into the future, given the increasing costs of survey preparation and the diminishing number of days that the ship is actually able to make money and be commissioned.

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).

By using the 7.2% after tax rate and assuming the equipment will be sold at the beginning of the 5th year for its book value, if Agro-Chem bought the equipment the company would achieve a project NPV of ($1,043,500.23). In contrast, if Agro-Chem decided to lease the equipment with the same assumptions they would obtain a project NPV of ($1,030,205). Given these assumptions and based off our calculated NPV we recommend that Agro-Chem lease the equipment rather than buy because of the $13,295.23 savings. This $13,295.23 savings is the NAL.

After settling the close debate as to where the American’s wished to build their canal and purchasing the area under the 1903 Hay-Herran treaty, the U.S. needed only permission to unearth the ground.  Colombia wasn’t too fond of the idea and thus rejected all of America’s efforts.  Negotiations with the country went quite poorly as well. Arthur Beaupré was chose to communicate with Colombia but negotiations continued to go poorly as, “he was frequently blunt, even dictatorial, in his

In the case of Worldwide Paper Company we performed calculations to decide whether they should accept a new project or not. We calculated their net income and their cash flows for this project (See Table 1.6 and 1.5). We computed WPC’s weighted average cost of capital as 9.87%. We then used the cash flows to calculate the company’s NPV. We first calculated the NPV by using the 15% discount rate; by using that number we calculated a negative NPV of $2,162,760. We determined that the discount rate of 15% was out dated and insufficient. To calculate a more accurate NPV for the project, we decided to use the rate of 9.87% that we computed. Using this number we got the NPV of $577,069. With the NPV of $577,069 our conclusion is to accept this

Alternative 1: Keep the old machine and have it overhauled. If the old machine is overhauled, it will be kept for another five years and then sold for its salvage value.

Relationship between Age and Ship Price: From the regression, we find that as the ship ages by one year, the price of the ship drops by $ 4.54 mln. This makes sense because as with any other vehicle or asset, the efficiency of the ship drops with age. As it gets older, the carrying value of the ship lowers due to depreciation.

Symbolism allows writers to suggest their ideas within a piece of literature. This is found in most types of writing. Stephen Crane expresses this in his short story, The Open Boat. Through symbolism and allegory, it is demonstrated that humans live in a universe that is unconcerned with them. The characters in the story come face to face with this indifference and are nearly overcome by Nature’s lack of concern. This is established in the opening scenes, the “seven mad gods” and in the realization of the dying soldier. The descriptions that Crane uses in the opening scenes illustrate nature’s lack of concern for their tragedy. He discusses the waves in the ocean that continually roll and crest. The waves are problems or

1) Do you expect daily spot hire rates to increase or decrease next year? (5 points)

The third scenario was ignoring the option to invest in the second-generation project and selling the equipment in year 2. We evaluated this option as a put option. First, we calculated the probabilities for going up and down based on the assumption of a risk neutral word. As a result, the probability of going upward is calculated as 0.3375 and downward probability is 0.6625. In order to determine the present value of all the sequence cash flow at the end of year 2, we calculated the upside change rate and downside change rate as 64.87% and -39.35%, respectfully. The next step is to analyze the option value by using the “Binomial Tree” method. In order to determine the present value of all the subsequence cash flow at the end of year 2, we calculated the cash flow at each node on the tree, until 2006. We discounted all the cash flow at the risk free rate at 10%. The End of Year NPV of all the subsequence cash flow at Year 2 is calculated as $7,571,752, and the selling price of the equipment at end of 2 is $4,000,000, which is the salvage value. We found the NPV of selling the machine at end of Year 2 to be -$2,951,861 as of Year 0, which is negative. The APV of the project after adding the option turned out to be -$6,321,932. This negative APV suggest that the

"The Open Boat," by Stephen Crane, has been critiqued and deconstructed by many thinkers. One such critique is "The Dialogic Narrative of `The Open Boat'." This critique on Stephen Crane's "The Open Boat," was written by two authors: Sura P. Rath and Mary Neff Shaw. The authors focused on a five main points in the duration of this Critique. First Mikail Baktin's theory of the "Five basic types of discourses," are discussed and used in the deconstruction of "The Open Boat." The critique then delves into the use of first-person actor-character to third person spectator-narrator. Shaw and Rath then annotate the tonal quality of "The Open Boat." Fourthly the critique characterizes and analyzes the key figures of the Novel. Lastly

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 placing them in position to capitalize in strong economies. However, the industry is volatile and suseptable to extremes both low and high. Many ship owners sought to sign contracts with time charters in order to shield themselves from the swings

Barring further analysis, the positive NPV indicates HPL should accept the proposal and proceed with expansion, as it would add value to the company. However, it should be noted that the NPV only becomes positive in year 10 (it is negative in all previous years). Thus, if HPL fails to extend the initial three-year contract with its largest retail customer and the project does not endure the estimated 10-year lifespan, it could in fact produce a loss in value for the company.