Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.
Transcript of Ocean Carriers
2. Expected daily hired rate is based on regression analysis.
3. Depreciation is calculated in straight line method for 25 years with salvage value 0
4. OCF is calculated in Bottom-Up Approach (OCF=NI + Depreciation)
5. Assume only real interest rate exists and no difference on risk less and risky interest rate Annual Cost = Daily Cost * Days
Depreciation = Total Value / Life
Net Working Capital = Initial Working Capital * (1+Inflation Rate) ^ Year
Time of Value = Value / (1 + Interest Rate) ^ Year Basic Calculation Hired Rate Calculation Should Ms Linn purchase the $39 capesize? If assume Ocean Carriers is a U.S. firm subject to 38% taxation. Question One 1.Do you expect daily spot hire rates to increase or decrease next year?
2.What factors drive average daily hire rate?
Iron ore shipment, age of the ship and subjective judgment.
3.How would you characterize the long-term prospects of the cape size dry bulk industry?
4.What do you think of the company’s policy of not operating ships over 15 years old?
That’s a wrong decision since NPV declines if that policy is adopted. Regression Line Analysis based on (17713, 20000), (18103, 20200), (18501, 20400) and we can draw a linear line as y=0.51x+11010 Question Two Should Ms Linn purchase the $39 capesize? If assume that Ocean Carriers is located in Hong Kong, where the company can enjoy tax exemption. Thank you ! Tax is the only difference for those two locations in this case. It greatly affect the net income, then OCF as well as IATCF, consequently leading to final present value judgement. 2.What factors drive average daily hire rate?
Iron ore shipment, age of the ship and subjective judgment. 4