of New Capsize Vessel (cash flows in thousands of dollars) Net Cash Flows
PV of Cash Flows
Net Present Value (NPV)
Net Working Capital
Questions Covered Ocean Carriers uses a 9% discount rate to evaluate its investment projects. 1.Do you expect daily spot hire rates to increase or decrease next year?
2.What factors drive average daily hire rates?
3.How would you characterize the long-term prospects of the capesize dry bulk industry? 4.Should Ms Linn purchase the $39M capesize? Make 2 different 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.
5.What do you think of the company’s policy of not operating ships over 15 years old? Keywords Cash flow, Forecasting, Present value, Valuation

Performance Managing your Team
Georgina has not had a good year in sales performance in her region and has received a ‘needs improvement’ rating. This means that she needs to be put on a Performance Improvement
Plan (PIP). This is a three step process which involves identifying and agreeing specific goals and objectives, scheduling monthly meetings to measure progress for a period of 6 months. Georgina is not happy with this level of micromanagement and is extremely defensive during the meeting. You need to convince her to agree to the PIP and cooperate during the process.
Cooperation with Marketing Director
The Sr VP of International (your manager) has identified a number of key accounts across your region where sales have dropped off dramatically. He has instructed the Marketing Director Men’s
Health to meet with you to discuss. However the Marketing
Director believes that this is a sales issue and not a marketing issue and at present he is not prepared to cooperate as he believes that the maximum marketing support is being provided.
You need to gain his agreement on an action plan on each of these accounts so that you can report back to your Sr. Vice
President.
Managing your team
Your last three sales team meetings have been a great success except for one member of the team who was very quiet and nonparticipatory during the first meeting and then booked annual leave for the next two scheduled meetings. This team member came from a marketing role in AMS moving into Sales. Feedback from the Marketing Director is that she hasn’t really adapted to her new role and is still concentrating on marketing activities. You have a meeting with Erica – to discuss

Performance Managing your Team
Georgina has not had a good year in sales performance in her region and has received a ‘needs improvement’ rating. This means that she needs to be put on a Performance Improvement
Plan (PIP). This is a three step process which involves identifying and agreeing specific goals and objectives, scheduling monthly meetings to measure progress for a period of 6 months. Georgina is not happy with this level of micromanagement and is extremely defensive during the meeting. You need to convince her to agree to the PIP and cooperate during the process.
Cooperation with Marketing Director
The Sr VP of International (your manager) has identified a number of key accounts across your region where sales have dropped off dramatically. He has instructed the Marketing Director Men’s
Health to meet with you to discuss. However the Marketing
Director believes that this is a sales issue and not a marketing issue and at present he is not prepared to cooperate as he believes that the maximum marketing support is being provided.
You need to gain his agreement on an action plan on each of these accounts so that you can report back to your Sr. Vice
President.
Managing your team
Your last three sales team meetings have been a great success
except