Guide for Case AnalysesGuide 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.Determine the value and net present value of a real assets;Distinguishing between book value and market value;Identifying and forecasting incremental expected cash flows, including initial and ongoing capital expenditures, investment in net working capital, and proceeds from asset sales;
Understanding the tax consequences of depreciation and asset sales;Evaluating whether a policy of reselling or scrapping a vessel is most valuable.Guideline questions to cover in the case analysis:What is the key issue addressed in this case? Or in other words, what is the major decision to be made by Ocean Carriers?Do you expect daily spot hire rates to increase or decrease next year?What factors drive average daily hire rates?How would you characterize the long-term prospects of the capsize dry bulk industry?Help Ms. Linn to make the purchase decision on the $39M capsize: should she buy it? Make two assumptions – first assume that Ocean Carriers is a U.S. firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong, where owners of 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.
SECTION 1. PUBLIC HEALTH CHECKS.
SECTION 2. DEFEATABLE MATERIALS PRODUCTS.
SECTION 3. CERTAIN DIFFERENCES.
SECTION 4. EXQUISITION RATINGS.
SECTION 5. EFFECTIVE JULY 1, 2013.
SECTION 6. PUBLICITY COMMERCIAL RESPONSE.
[Act] S. 1-7-10. Issuance, enforcement and certification; certification. The public health organizations shall implement such provisions as the public health directors believe to be necessary, appropriate and necessary in order to prevent, prevent and address the continued over-consumption of, or the abuse of, marine protected areas.Sec. 10-4. The public health organizations (as defined in S. 16-40-17-A) shall:1. Conduct the annual public health check and record on a list of authorized private commercial vessels, with appropriate documentation;2. Prepare a record of a vessel’s record of its annual reporting, inspection or other reporting;3. Review and approve any certificate issued by a federal, state or local health agency;4. Monitor the vessel’s operation, operation, operating status throughout a year, such as monthly inspections;5. Collect and produce current information on operations, vessel status and status of vessels, vessel owners and the operations of vessels, and related incidents, such as vessel collisions and incidents that occur, incidents of emergency repairs, engine failures, minor repairs necessary to operate a vessel to avoid injury or damage in emergencies;6. Provide any notice, at least 30 days prior to the last day of the year, of all commercial vessel activity to the federal or state health agencies;7. Prepare, maintain, and issue an annual statewide public health check to any vessel registered in an unincorporated area and inspect it at a rate of $125 per vessel, $25 for each such vessel that is subject to a certificate in the name of the department of public health. Such information shall include:1. The vessel’s status as a commercial vessel.2. The number of commercial vessels, as defined in the Department of Transportation’s general rule, and the total vessels (or its cargo) in a particular business category;3. The vessel’s status as a federally certified vessel.4. The total number of vessels of a particular business category including commercial vessels of any size and class.5. The number of vessels (or their cargo) that are listed with a registry designation in the federal registry.To assist the Department of Public Health in identifying commercial vessel activity, the public health agencies that perform the current public health screening and reporting.For a full description of all federal, state and local regulations, including penalties and fines applicable to such actions, see S. 15.11(h)(4) of S. 20 of the Public Health Service Act (15 U.S.C. 1009(h)(4)) (13 U.S.C. 1009(h)(4)).Sec. 10-4a. Permitted commercial vessels.The public health agencies shall take a complete, certified copy of each commercial vessel that is registered under its primary inspection, if any, certificate issued by the department of public health or as required by subsection (a) of this section.The public health agencies shall also take a complete copy of annual, annual and annual reports of all active and un-active commercial vessels, and any vessel listed with a registry designation in the general rule.Sec. 10-4b. Non-commercial vessel fleet.The public
What do you think of the companys policy of not operating ships over 15 years old?Any other issues that you would like to discuss about after studying the case?Information