Friday, October 4, 2013

Ocean Carriers Case Questions


1. What factors drive average daily hire rates?
2. Should Ms. Linn purchase the $39 M capesize? Make 2 different assumptions.
First, assume that Ocean Carriers is a US firm subject to 35% taxation.
Second, assume that Ocean Carriers is located in Hong-Kong, where owners of the Hong-Kong ships are not required to pay any tax on profits made overseas, and are also exempted from paying any tax on profit made on cargo uplifted from Hong-Kong.
Assume (for both options above) that project life is 25 years.
(number 2 question should be answered by using excel sheet to answer and calculate the assumtions)

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