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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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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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 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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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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the amount of carbon dioxide in the atmosphere. If there is more carbon dioxide in the atmosphere more rays from the sun are absorbed. This will cause the atmosphere and the earth?s temperature to warm. The warming of the earth will cause the oceans to become warmer. When they heat up, more water is evaporated, causing more carbon dioxide to be released into the atmosphere. Once this process starts, it is extremely hard to control. If the temperature keeps rising, more carbon dioxide will
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the circulation of sea water are disturbed by global warming. Cold water moves along the sea floor towards the equator and warm water around the equator moves toward the poles across the surface of the ocean. It is known as thermohaline circulation. It is a very important process concerning ocean life. This circulation process brings oxygenated water to the sea floor. If this did not happen, "water along the sea floor would become depleted of the oxygen organisms need to survive8". Fish, such
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shipper the carrier will not be held liable. I will give you examples and also discuss when the act of a shipper reduces a carrier liability. Before I get into the exceptions I first must give you the general rule so that you can better understand what the exceptions are for act of the shipper. If there were any damage, delay, or loss because of the negligence or oversight of the shipper, consignee or any other party with a legal right to exercise authority over the freight, the carrier cannot be
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BA employs about 13,000 cabin crew staff and half of them planning to take industrial actions against the management due to changes of pay structure, travel concessions charges, failure to restore staff travel arrangements, disciplinary action taken against staff. Millions will see their wages are going to be frozen or benefits cut while strike persists at an airline, half of them expecting that rises in basic salary from February 2011. Therefore existing cabin crew expect a new top-up payment to
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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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