NETCO Financial Analysis
•
ECOLE HASSANIA DES
TRAVAUX PUBLICS
Introduction to finance
NETCO Analysis
Done by JAMAL Zalagh
Supervised by Dr OTHMAN Cole
Summary
• Introduction of NETCO company
• NETCO Investment options
• Financial analysis of NETCO options
• Recommendation for NETCO management
CALA Multicast Course November 2007
All Rights Reserved © Alcatel-Lucent 2007.
Introduction of NETCO company
CALA Multicast Course November 2007
All Rights Reserved © Alcatel-Lucent 2007.
NETCO (The New Economy Transport Company )
The New Economy Transport Company was formed in 1955 to carry cargo and passengers between ports in the Pacific Northwest and Alaska. By 2008 its fleet had grown to four vessels, including a small dry-cargo vessel, the Vital Spark.
The Vital spark had been operating for the last 25 years, and is badly in need of an overhaul. The company management is analysing several projects to overhaul the Vital
Spark or to purchase of a new vessel in replacement of the old one. Before making any financial decision, the management should analyse the environment factors affecting the maritime transport industry.
The management face a real issue of making investment decisions.
CALA Multicast Course November 2007
All Rights Reserved © Alcatel-Lucent 2007.
NETCO Investment options
CALA Multicast Course November 2007
All Rights Reserved © Alcatel-Lucent 2007.
NETCO Investment options
By 2008, the company management is studying several options to overhaul the Vital
Spark or to replace it by a new vessel.
There are 4 option including the part B of the case study which are:
Project 1: Overhaul Vital Spark without the new engine and the system control
Project 2: Overhaul Vital spark with the new engine and the system control
Project 3: Purchase of a new vessel and operating the Vital spark for one more year
Project 4: Purchase of a new vessel and stop immediately operating the Vital spark
CALA Multicast Course
ECOLE HASSANIA DES
TRAVAUX PUBLICS
Introduction to finance
NETCO Analysis
Done by JAMAL Zalagh
Supervised by Dr OTHMAN Cole
Summary
• Introduction of NETCO company
• NETCO Investment options
• Financial analysis of NETCO options
• Recommendation for NETCO management
CALA Multicast Course November 2007
All Rights Reserved © Alcatel-Lucent 2007.
Introduction of NETCO company
CALA Multicast Course November 2007
All Rights Reserved © Alcatel-Lucent 2007.
NETCO (The New Economy Transport Company )
The New Economy Transport Company was formed in 1955 to carry cargo and passengers between ports in the Pacific Northwest and Alaska. By 2008 its fleet had grown to four vessels, including a small dry-cargo vessel, the Vital Spark.
The Vital spark had been operating for the last 25 years, and is badly in need of an overhaul. The company management is analysing several projects to overhaul the Vital
Spark or to purchase of a new vessel in replacement of the old one. Before making any financial decision, the management should analyse the environment factors affecting the maritime transport industry.
The management face a real issue of making investment decisions.
CALA Multicast Course November 2007
All Rights Reserved © Alcatel-Lucent 2007.
NETCO Investment options
CALA Multicast Course November 2007
All Rights Reserved © Alcatel-Lucent 2007.
NETCO Investment options
By 2008, the company management is studying several options to overhaul the Vital
Spark or to replace it by a new vessel.
There are 4 option including the part B of the case study which are:
Project 1: Overhaul Vital Spark without the new engine and the system control
Project 2: Overhaul Vital spark with the new engine and the system control
Project 3: Purchase of a new vessel and operating the Vital spark for one more year
Project 4: Purchase of a new vessel and stop immediately operating the Vital spark
CALA Multicast Course