1 / 4

Ocean Carriers

Ocean Carriers. EMM Capstone Course Fall 2009. Ocean Carriers. This case involves a capital budgeting decision under conditions of uncertainty. Do you expect daily hire spot rates to rise or fall next year? What factors determine daily hire rates?

chiko
Download Presentation

Ocean Carriers

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ocean Carriers EMM Capstone Course Fall 2009

  2. Ocean Carriers • This case involves a capital budgeting decision under conditions of uncertainty. • Do you expect daily hire spot rates to rise or fall next year? • What factors determine daily hire rates? • How would you characterize the long-term economic prospects of the capesize dry bulk industry?

  3. Ocean Carriers • Should Ms Linn recommend the $39 million capital investment? • Assume two scenarios: (1) Assume OC is a US corporation subject to a 35% tax rate on lease income as a result of this deal; (2) Assume OC is a Hong Kong corporation that is not subject to taxes on lease income earned outside Hong Kong.

  4. Ocean Carriers • What do you think about OC’s policy of not operating ships over 15 years old? • Can you suggest other alternatives to this policy? • Be creative!!!

More Related