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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The Beach The beach is one of my favorite places to go. It is where I would like to live one day. In my opinion‚ it is the best place to go on family vacations too. Everyone always has that one place that they always like to escape to‚ and mine is the beach. The beach is the ultimate cure for all of my problems. While I am there‚ all of my obligations are suddenly gone. There are three things that I love about the beach: the warm weather‚ shopping‚ and the places to eat. The first thing that I
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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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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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Introduction Continental Carriers Inc is a trucking company which specialises in transporting general commodities. Since its establishment in 1952 the company operates within the district of the Pacific Coast and from Chicago to various points in Texas. It was noted that the company maintains an overall low debt policy‚ whereby they obtain infrequent short term loans and avoid long term debt. Furthermore with the appointment of Mr. Evans as president‚ the company became more profitable and experienced
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One must take careful consideration before acting‚ because the aftermath can lead to a chain of events whose consequences can be disastrous. Nino Ricci’s Lives of the Saints is an excellent example of how the consequences of a person’s actions can affect everyone around them‚ including themselves. First‚ Cristina makes several choices throughout the novel that not only reflect her thoughtlessness‚ but her inability to see that it affects people beyond herself. The repercussions of Cristina’s actions
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Ocean Carriers Objectives • Forecast pro-forma cash flows for a project • Estimate project values using Net Present Value (NPV) • Conduct sensitivity analysis for the forecast inputs Setting • January 2001 • Customer offering attractive terms on 3-year lease for a capesize carrier • Would require purchase of new carrier since existing fleet does not fulfill customer needs • Should it be purchased? Industry Dynamics • Revenue Drivers • Outlook in the: –
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The Beach The smell of salt in the air‚ the wind blistering my face‚ the sun glinting in my eyes; these are some of my favorite things about the beach. I have always loved the beach and I have always love the sights and smells of it. The first thing I always notice when I first step out of the car‚ even when it’s only at the beach house and not the actual beach‚ the smell of seaweed and salt immediately attacks my nostrils. No smell is as potently sweet as the sour smell of the ocean
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Cristina Provenzano Professor Polgar February 21‚ 2011 Descriptive Essay The Beach As the sun peeked over the horizon announcing the beginning of another beautiful hot summer day‚ Lisa drove to the beach with a sense of excitement. She packed her bag for a day at the beach and a time when she had a little peace of mind. Enjoying the morning breeze caressing her face‚ Lisa sped down the highway to the voice of Taylor Swift booming throughout her speakers of her cherry red X6 BMW. She
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different for everyone. I enjoy the sight of waves crashing and thick white foam. Sometimes the waves seem to be roaring and at other times barely rolling. Thats one reason why I like the beach‚ its always a mystery. A complete getaway from the concrete jungle we live in and a place to just relax with nature‚ thats the beach. Theres always the grainy sand that seems to make its way into everything and then the humid salty air that seems to paint a layer onto your body when you get out‚ but those are such
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