Introduction
Ocean Carriers Inc. is a shipping company specializing in the operation of capsizes bulk dry carriers. In January 2001, the vice president of finance for Ocean Carriers was evaluating a contract proposal. In the proposed contract, Ocean Carriers would lease one ship to a client for a three year time frame. The customer would begin utilizing the ship in 2003. In 2001, Ocean Carriers did not have a ship that would meet the needs of this customer, and thus was considering purchasing a new capsize carrier to be leased to the customer. The vice president of finance for Ocean Carriers was also interested in looking at the corporate policy of scrapping a vessel after 15 years, even though such vessels have a product life of 25 years.
Analysis
In considering whether Ocean Carriers should purchase the new capsize carrier for the potential customer, we completed a net present value analysis of the ship. We utilized the given expected daily hire rate to calculate the revenue......

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Title: Finance--Ocean Carriers Inc
Approximate Word Count: 1332
Approximate Pages: 6 (250 words per double-spaced page)

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