Ocean Carriers C

Group 5

In Ocean
4 Different
1.Carriers
25 Year situation
time period
with tax Scen
@35

2. 25 Year time period with No Tax (

3. 15 Year time period with Tax @35
4. 15 Year time period with No Tax (
Cost of ship
Exptected Rate of Inflation
Operating Costs Rate of Increase
Tax Rate
Discount Rate

39000000
3.00%
4.00%
35.00%
9.00%

1. 25 Year time period with tax @35%

Callendar Year
Age of Ship
Expected daily hire rate
Total days in year
Maintenance days

2001

2002

-3900000

-3900000

Revenue
Expenses
Expected Operating cost per day
Total Operating cost
Purchase cost
Depreciation of purchase cost
Capital Expenditure for surveys
Depreciation of surveys cost
Total depreciation
Salvage Value
Operating profit
Tax
PAT
Net working capital
Change in working capital
Net Cash flow

0
-3,900,000

-3,900,000

PV

0
($3,900,000.0)

NPV
IRR

($4,118,751.6)
7%

1
($3,577,981.7)
( from PV values)

cean Carriers Case Analysis

Group 5

iers situation
4 Different
Year
time period
with tax Scenario
@35% are possible

Key As
1. The first payment of shi

Year time period with No Tax (Hongkong)

Year time period with Tax @35%
Year time period with No Tax (Hongkong)

2003
1
20000
365
8

2004
2
20200
365
8

2005
3
20400
365
8

2006
4
18714
365
8

2007
5
17283
365
8

7140000

7211400

7282800

6680898

6170031

4000
1460000

4160
1518400

4326.4
1579136

4499.456
1642301.44

4679.43424
1707993.4976

-31200000
1560000
0
0
1560000

1560000
0
0
1560000

1560000
0
0
1560000

1560000
0
0
1560000

1560000
300000
0
1560000

4120000
1442000
2678000

4133000
1446550
2686450

4143664
1450282.4
2693381.6

500000
500,000

515000
15,000

530450
15,450

546363.5
15,914

562754.405
16,391

-27,462,000

4,231,450

4,237,932

3,805,174

3,129,933

3478596.56 2902037.5024
1217508.796 1015713.12584
2261087.764 1886324.37656

2
($23,114,216.0)
( from PV values)

3
$3,267,455.8

4
$3,002,257.6

5
$2,473,102.2

6
$1,866,277.1

Key Assumptions ::
he first payment of ship will happen in 2001 as the date of 1st January 2001 was mentioned in case.

2008
6
17481
365
12

2009
7
17682
365
12

2010
8
17886
365
12

2011
9
18092
365
12

2012
10
17428
365
12

6170793

6241746

6313758

6386476

6152084

4866.6116096 5061.27607398 5263.72711694 5474.27620162 5693.24724969

1776313.2375
1847365.767 1921260.39768 1998110.81359 2078035.24614

1560000
0
60000
1620000

1560000
0
60000
1620000

1560000
0
60000
1620000

1560000
0
60000
1620000

1560000
350000
60000
1620000

2774479.7625
2774380.233 2772497.60232 2768365.18641 2454048.75386
971067.916874 971033.081549 970374.16081 968927.815243 858917.063853
1803411.84562 1803347.15145 1802123.44151 1799437.37117 1595131.69001
579637.03715 597026.148265 614936.932712 633385.040694 652386.591915
16,883
17,389
17,911
18,448
19,002
3,406,529

3,405,958

3,404,213

3,400,989

2,846,130

7
$1,863,488.1

8
$1,709,335.5

9
$1,567,394.1

10
$1,436,614.6

11
$1,102,968.9

entioned in case.

2013
11
17628
365
16

2014
12
17831
365
16

2015
13
18036
365
16

2016
14
18243
365
16

2017
15
14762
365
16

6152172

6223019

6294564

6366807

5151938

5920.97713967 6157.81622526 6404.1288743 6660.2940292 6926.7057904

2161156.65598 2247602.92222 2337507.0391 2431007.3207 2528247.6135

1560000
0
70000
1630000

1560000
0
70000
1630000

1560000
0
70000
1630000

1560000
0
70000
1630000

1560000
750000
70000
1630000
5000000
2361015.34402 2345416.07778 2327056.9609 2305799.6793 993690.3865
826355.370407 820895.627223 814469.93631 807029.88776 347791.63527
1534659.97361 1524520.45056 1512587.0246 1498769.7916 645898.75122
671958.189672 692116.935362 712880.44342 734266.85673 756294.86243
19,572
20,159
20,764
21,386
22,028
3,145,088

3,134,362

3,121,824

3,107,383

1,503,871

12
$1,118,188.1

13
$1,022,361.9

14
$934,194.7

15
$853,094.9

16
$378,779.6

2018
16
14932
365
16

2019
17
15104
365
16

2020
18
15278
365
16

2021
19
15454
365
16

2022
20
14654
365
16

5211268

5271296

5332022

5393446

5114246

7203.774022 7491.9249829 7791.6019822 8103.2660615

2629377.518 2734552.6188 2843934.7235 2957692.1125

8427.396704
3075999.797

1560000
1560000
1560000
1560000
0
0
0
0
150000
150000
150000
150000
1710000
1710000
1710000
1710000
5150000
5304500
5463635
5627544.05
871890.48196 826743.38124 778087.27649 725753.88755
305161.66869 289360.18343 272330.54677 254013.86064
566728.81327 537383.1978 505756.72972 471740.02691

1560000
850000
150000
1710000
5796370.3715
328246.20305
114886.17107
213360.03198

778983.7083 802353.21955 826423.81614 851216.53062 876753.02654

22,689
23,370
24,071
24,793
25,536
2,254,040

2,224,014

2,191,686

2,156,947

1,047,824

17
$520,848.2

18
$471,477.0

19
$426,260.3

20
$384,866.0

21
$171,526.7

2023
21
14823
365
16

2024
22
14993
365
16

2025
23
15166
365
16

2026
24
15341
365
16

2027
25
13448
365
16

5173227

5232557

5292934

5354009

4693352

8764.4925721 9115.072275 9479.675166 9858.8621727 10253.21666

3199039.7888 3327001.3804 3460081.4356 3598484.693 3742424.0807

1560000
0
170000
1730000
5970261.4826
244187.21117
85465.52391
158721.68726

1560000
1560000
1560000
1560000
0
0
0
0
170000
170000
170000
170000
1730000
1730000
1730000
1730000
6149369.3271 6333850.4069 6523865.9191 6719581.8967
175555.61962 102852.5644 25524.306979 -779072.08074
61444.466866 35998.397541 8933.5074426 -272675.22826
114111.15275 66854.166862 16590.799536 -506396.85248

903055.61733 930147.28585 958051.70443 986793.25556 1016397.0532

26,303
27,092
27,904
28,742
29,604
1,862,419

1,817,019

1,768,950

1,717,849

8,929,978

1,016,397

22
$279,701.3

23
$250,351.5

24
$223,604.0

25
$199,215.3

26
$950,082.8

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
2,210,396

Cost of ship
Exptected Rate of Inflation
Operating Costs Rate of Increase
Tax Rate
Discount Rate

39000000
3.00%
4.00%
35.00%
9.00%

2. 25 Year time period with tax @35%

Callendar Year
Age of Ship
Expected daily hire rate
Total days in year
Maintenance days

2001

2002

-3900000

-3900000

Revenue
Expenses
Expected Operating cost per day
Total Operating cost
Purchase cost
Depreciation of purchase cost
Capital Expenditure for surveys
Depreciation of surveys cost
Total depreciation
Salvage Value
Operating profit

Net working capital

Change in working capital
Net Cash flow
PV
NPV
NPV
IRR

0
-3,900,000 -3,900,000
($3,900,000.00)
###
0
1
$4,205,043.63 (from PV values)
$3,857,838.20 (from Excel formula)
11%

@35%
2003
1
20000
365
8

2004
2
20200
365
8

2005
3
20400
365
8

2006
4
18714
365
8

2007
5
17283
365
8

2008
6
17481
365
12

7140000

7211400

7282800

6680898

6170031

6170793

4000
1460000

4160
1518400

4326.4
1579136

-31200000
1560000
0
0
1560000

1560000
0
0
1560000

1560000
0
0
1560000

1560000
0
0
1560000

1560000
300000
0
1560000

1560000
0
60000
1620000

4120000

4133000

4143664

3478597

2902038

2774480

500000
500,000

515000
15,000

530450
15,450

546363.5 562754.41
15,914
16,391

579637
16,883

-26,020,000
($21,900,513.42)
2
om PV values)
om Excel formula)

4499.456 4679.4342 4866.6116

1642301 1707993 1776313

5,678,000 5,688,214 5,022,683 4,145,647 4,377,597

$4,384,457.80
###
###
###
###
3
4
5
6
7

2009
7
17682
365
12

2010
8
17886
365
12

2011
9
18092
365
12

2012
10
17428
365
12

2013
11
17628
365
16

2014
12
17831
365
16

2015
13
18036
365
16

6241746

6313758

6386476

6152084

6152172

6223019

6294564

5061.2761 5263.7271 5474.2762 5693.2472 5920.9771 6157.8162 6404.1289

1847366 1921260 1998111 2078035 2161157 2247603 2337507

1560000
0
60000
1620000

1560000
0
60000
1620000

1560000
0
60000
1620000

1560000
350000
60000
1620000

1560000
0
70000
1630000

1560000
0
70000
1630000

1560000
0
70000
1630000

2774380

2772498

2768365

2454049

2361015

2345416

2327057

597026.15 614936.93
17,389
17,911

633385 652386.59 671958.19 692116.94 712880.44

18,448
19,002
19,572
20,159
20,764

4,376,991 4,374,587 4,369,917 3,705,047 3,971,444 3,955,257 3,936,293

###
###
###
###
###
###
###
8
9
10
11
12
13
14

2016
14
18243
365
16

2017
15
14762
365
16

2018
16
14932
365
16

2019
17
15104
365
16

2020
18
15278
365
16

2021
19
15454
365
16

2022
20
14654
365
16

6366807

5151938

5211268

5271296

5332022

5393446

5114246

6660.294 6926.7058
2431007 2528248

7203.774
2629378

7491.925
2734553

7791.602 8103.2661 8427.3967

2843935 2957692 3076000

1560000
0
70000
1630000

1560000 1560000 1560000 1560000 1560000

750000
0
0
0
0
70000
150000
150000
150000
150000
1630000 1710000 1710000 1710000 1710000
5000000 5150000 5304500 5463635 5627544
2305800 993690.39 871890.48 826743.38 778087.28 725753.89

1560000
850000
150000
1710000
5796370
328246.2

734266.86 756294.86 778983.71 802353.22 826423.82 851216.53

21,386
22,028
22,689
23,370
24,071
24,793

876753
25,536

3,914,413 1,851,662 2,559,202 2,513,374 2,464,017 2,410,961 1,162,710

###
###
###
###
###
###
###
15
16
17
18
19
20
21

2023
21
14823
365
16

2024
22
14993
365
16

2025
23
15166
365
16

2026
24
15341
365
16

2027
25
13448
365
16

5173227

5232557

5292934

5354009

4693352

8764.4926 9115.0723 9479.6752 9858.8622 10253.21666

3199040 3327001 3460081 3598485 3742424.0807

1560000 1560000 1560000 1560000

1560000
0
0
0
0
0
170000
170000
170000
170000
170000
1730000 1730000 1730000 1730000
1730000
5970261 6149369 6333850 6523866 6719581.8967
244187.21 175555.62 102852.56 25524.307 -779072.08074

903055.62 930147.29
26,303
27,092

958051.7 986793.26 1016397.0532

27,904
28,742
29,604

1,947,885 1,878,464 1,804,948 1,726,783

###
###
###
###
22
23
24
25

8,657,303
$921,072.20
26

1,016,397

3. 15 Year time period with tax @35%

Cost of ship
Exptected Rate of Inflation
Operating Costs Rate of Increase
Tax Rate
Discount Rate
Salvage Value
Callendar Year
Age of Ship
Expected daily hire rate
Total days in year
Maintenance days

39000000
3.00%
4.00%
35.00%
9.00%
5000000
2001

2002

2003
1
20000
365
8

Revenue

7140000

Expenses
Expected Operating cost per day
Total Operating cost

4000
1460000

Purchase cost
Depreciation of purchase cost
Capital Expenditure for surveys
Depreciation of surveys cost
Total depreciation

-3900000
0
0
0

-3900000 -31200000
0 2266666.667
0
0
0
0
2266666.667

Operating profit
Tax @ 35%
PAT
Net working capital
Change in working capital

3413333.333
1194666.667
2218666.667
0

0
0

500000
500,000

Cash Flow
PV

-3900000 -3,900,000 -27,214,667

($3,900,000.00)
###
###
0
1
2

NPV
NPV
IRR

($4,528,884.25) From PV values

($4,154,939.68) From excel formula
6%

2004
2
20200
365
8

2005
3
20400
365
8

2006
4
18714
365
8

2007
5
17283
365
8

2008
6
17481
365
12

2009
7
17682
365
12

2010
8
17886
365
12

2011
9
18092
365
12

7211400

7282800

6680898

6170031

6170793

6241746

6313758

6386476

4160
1518400

4326.4 4499.456 4679.434 4866.612 5061.276 5263.727 5474.276

1579136 1642301 1707993 1776313 1847366 1921260 1998111

2266667
0
0
2266667

2266667
0
0
2266667

3426333
1199217
2227117

3436997 2771930 2195371 2067813 2067714 2065831 2061699

1202949 970175.5 768379.8 723734.6 723699.7 723040.8 721594.5
2234048 1801754 1426991 1344079 1344014 1342790 1340104

515000
15,000

2266667
0
0
2266667

2266667
300000
0
2266667

530450 546363.5 562754.4

15,450
15,914
16,391

2266667
0
60000
2326667

2266667
0
60000
2326667

2266667
0
60000
2326667

579637 597026.1 614936.9

16,883
17,389
17,911

2266667
0
60000
2326667

633385
18,448

4,478,783 4,485,265 4,052,508 3,377,267 3,653,863 3,653,291 3,651,546 3,648,323

###
###
###
###
###
###
###
###
3
4
5
6
7
8
9
10

2012
10
17428
365
12

2013
11
17628
365
16

2014
12
17831
365
16

2015
13
18036
365
16

2016
14
18243
365
16

2017
15
14762
365
16

6152084

6152172

6223019

6294564

6366807

5151938

5693.247 5920.977 6157.816 6404.129 6660.294 6926.706

2078035 2161157 2247603 2337507 2431007 2528248

2266667
350000
60000
2326667
1747382
611583.7
1135798

2266667
0
70000
2336667

2266667
0
70000
2336667

2266667
0
70000
2336667

2266667
0
70000
2336667

2266667
0
70000
2336667

1654349 1638749 1620390 1599133 287023.7

579022 573562.3 567136.6 559696.6 100458.3
1075327 1065187 1053254 1039436 186565.4

652386.6 671958.2 692116.9 712880.4 734266.9 756294.9

19,002
19,572
20,159
20,764
21,386
22,028
3,093,463 3,392,422 3,381,695 3,369,157 3,354,717 8,257,499
###
###
###
###
###
###
11
12
13
14
15
16

756,295

4. 15 Year time period with no tax

Cost of ship
Exptected Rate of Inflation
Operating Costs Rate of Increase
Tax Rate
Discount Rate
Salvage Value
Callendar Year
Age of Ship
Expected daily hire rate
Total days in year
Maintenance days

39000000
3.00%
4.00%
35.00%
9.00%
5000000
2001

2002

-3900000
0
0
0

-3900000
0
0
0

Revenue
Expenses
Expected Operating cost per day
Total Operating cost
Purchase cost
Depreciation of purchase cost
Capital Expenditure for surveys
Depreciation of surveys cost
Total depreciation
Operating profit

Net working capital

Change in working capital
Cash Flow
PV

NPV
NPV
IRR

0
-3900000
($3,900,000.00)
0
$1,719,019.30
$1,577,081.93
10%

-3,900,000
($3,577,981.65)
1
(From PV Values)

2003
1
20000
365
8

2004
2
20200
365
8

2005
3
20400
365
8

2006
4
18714
365
8

7140000

7211400

7282800

6680898

4000
1460000

4160
1518400

4326.4
1579136

4499.456
1642301.44

-31200000
2266666.66666667 2266666.666667 2266666.666667 2266666.666667
0
0
0
0
0
0
0
0
2266666.66666667 2266666.666667 2266666.666667 2266666.666667
3413333.33333333 3426333.333333 3436997.333333 2771929.893333

500000
500,000

515000
15,000

530450
15,450

546363.5
15,914

-26,020,000
($21,900,513.42)
2

5,678,000
$4,384,457.80
3

5,688,214
$4,029,674.20
4

5,022,683
$3,264,399.36
5

(From PV Values)

2007
5
17283
365
8

2008
6
17481
365
12

2009
7
17682
365
12

2010
8
17886
365
12

2011
9
18092
365
12

6170031

6170793

6241746

6313758

6386476

4679.43424
4866.6116096 5061.276073984 5263.727116943 5474.276201621
1707993.4976 1776313.237504 1847365.767004 1921260.397684 1998110.813592

2266666.666667 2266666.666667 2266666.666667 2266666.666667 2266666.666667

300000
0
0
0
0
0
60000
60000
60000
60000
2266666.666667 2326666.666667 2326666.666667 2326666.666667 2326666.666667
2195370.835733 2067813.095829 2067713.566329 2065830.935649 2061698.519742

562754.405
16,391
4,145,647
$2,471,913.61
6

579637.03715 597026.1482645 614936.9327124 633385.0406938

16,883
17,389
17,911
18,448
4,377,597
$2,394,695.54
7

4,376,991
$2,196,664.25
8

4,374,587
$2,014,181.29
9

4,369,917
$1,845,900.20
10

2012
10
17428
365
12

2013
11
17628
365
16

2014
12
17831
365
16

2015
13
18036
365
16

2016
14
18243
365
16

6152084

6152172

6223019

6294564

6366807

5693.247249686 5920.977139673
2078035.246135 2161156.655981

6157.81622526 6404.128874271 6660.294029242

2247602.92222 2337507.039109 2431007.320673

2266666.666667 2266666.666667 2266666.666667 2266666.666667 2266666.666667

350000
0
0
0
0
60000
70000
70000
70000
70000
2326666.666667 2336666.666667 2336666.666667 2336666.666667 2336666.666667
1747382.087198 1654348.677353 1638749.411113 1620390.294225

1599133.01266

652386.5919146 671958.1896721 692116.9353622 712880.4434231 734266.8567258

19,002
19,572
20,159
20,764
21,386
3,705,047
$1,435,827.50
11

3,971,444
$1,411,986.16
12

3,955,257
$1,290,120.48
13

3,936,293
$1,177,921.90
14

3,914,413
$1,074,655.35
15

2017
15
14762
365
16
5151938

6926.7057904112
2528247.6135001

2266666.6666667
0
70000
2336666.6666667
287023.71983324

756294.86242756
22,028
8,357,957
$2,105,116.71
16

756,295