Question: please, i need help as soon as possible. BUAD 323 Ocean Carriers Assign(1) (1) - Compatibility Mode - Saved to this PC Layout References Mailings

please, i need help as soon as possible. please, i need help as soon as possible. BUAD 323 Ocean Carriers

BUAD 323 Ocean Carriers Assign(1) (1) - Compatibility Mode - Saved to this PC Layout References Mailings Review View Help A E B 21 A A A A D AaBbce AaBbcc AaBbCd AaBbC Aal 1 Heading 3 1 Normal 1 No Spac... Heading 1 A Styles Paragraph Questions: 1. Describe the market conditions for capsize carriers in 2001. 2. Should Ms. Linn purchase the $39 million caresize? Calculate the NPV for an American company with a 35% tax rate under the assumption the capesize operates for 25 years. Assume a 9% cost of capital - does a 9% cost of capital seem reasonable? Please explain/justify 3. How does this scenario compare to the firms policy of scrapping the capesize after 15 years? Explain and provide analysis 4. How much could you sell it for in year 15? Is this better than scrapping it? Explain and provide analysis. Guidelines: 1. Clearly state all assumptions used in creating your financial analysis 2. All exhibits must be referenced and explained in the analysis. Additionally, all exhibits must be clearly labeled and titled, and calculations need to be explained 3. Analysis and layout to be professional, and special attention must be paid to the layout of large spreadsheet exhibits (i.e. ensure that the printed version of spreadsheets contains appropriate headings on each page, numbers are clearly explained, etc) 4. There is no specific page length requirement for the analysis, however, please remember that longer is not always better BUAD 323 Ocean Carriers Assign(1) (1) - Compatibility Mode - Saved to this PC Layout References Mailings Review View Help A E B 21 A A A A D AaBbce AaBbcc AaBbCd AaBbC Aal 1 Heading 3 1 Normal 1 No Spac... Heading 1 A Styles Paragraph Questions: 1. Describe the market conditions for capsize carriers in 2001. 2. Should Ms. Linn purchase the $39 million caresize? Calculate the NPV for an American company with a 35% tax rate under the assumption the capesize operates for 25 years. Assume a 9% cost of capital - does a 9% cost of capital seem reasonable? Please explain/justify 3. How does this scenario compare to the firms policy of scrapping the capesize after 15 years? Explain and provide analysis 4. How much could you sell it for in year 15? Is this better than scrapping it? Explain and provide analysis. Guidelines: 1. Clearly state all assumptions used in creating your financial analysis 2. All exhibits must be referenced and explained in the analysis. Additionally, all exhibits must be clearly labeled and titled, and calculations need to be explained 3. Analysis and layout to be professional, and special attention must be paid to the layout of large spreadsheet exhibits (i.e. ensure that the printed version of spreadsheets contains appropriate headings on each page, numbers are clearly explained, etc) 4. There is no specific page length requirement for the analysis, however, please remember that longer is not always better

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