StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Marine Finance and Insurance - Coursework 3 - Essay Example

Comments (0) Cite this document
Summary
We do not deduct the salvage value because it is not considered for tax depreciation purposes under the Modified Accelerated Cost Recovery System…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.1% of users find it useful
Marine Finance and Insurance - Coursework 3
Read TextPreview

Extract of sample "Marine Finance and Insurance - Coursework 3"

Download file to see previous pages In this particular case, no tax rate is given.
7Capital investment appraisal or capital budgeting is primarily concerned with incremental cash flows therefore depreciation should be added back to arrive at the projected cash flow from operations, because there is no actual cash outflow for depreciation (Brigham, et al, 1999).
3The discounted cash flows are the resulting cash flows after applying the cost of capital which is 14% or , projected cash flow during the year/ (1.14)t, where t represents the time or nth year, 1 is constant, and .14 or 14% is Tower’s cost of capital. To illustrate: Discounted Cash Flow for the first year is computed as: 2,890,000.00/ (1.14)1. For the second year, it is, 6,370,000.00/ (1.14)2, and so on until the sixth year. We will use the discounted cash flows in calculating the discounted payback period and the profitability index or PI (Gapenski, et al, 1999).
Regular Payback Method. This method of appraising investment tells the number of operating years needed to recover the initial investment or cash outlay. It is the number of years required until the accumulated cash inflows will equal to the amount of the initial investment. The exact payback period is computed using the formula: Payback = Year before full recovery + (Unrecovered Cost at the start of Year/Cash Flow during the Year). If the capital is recovered within the shortest possible time, then this is good for the company (Brigham et al 1999).
If the payback period is less than the companys required payback period for the investment, the proposal is accepted, otherwise it is rejected. However, this method does not consider significant cash flows or profit after the payback period. Therefore, this could not be a sound basis for deciding on the profitability of the investment (Bucklery 1996).
For Towers, it will take 3 years before full recovery of proposed investment, total accumulated inflows ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Marine Finance and Insurance - Coursework 3 Essay”, n.d.)
Marine Finance and Insurance - Coursework 3 Essay. Retrieved from https://studentshare.org/miscellaneous/1556788-marine-finance-and-insurance-coursework-3
(Marine Finance and Insurance - Coursework 3 Essay)
Marine Finance and Insurance - Coursework 3 Essay. https://studentshare.org/miscellaneous/1556788-marine-finance-and-insurance-coursework-3.
“Marine Finance and Insurance - Coursework 3 Essay”, n.d. https://studentshare.org/miscellaneous/1556788-marine-finance-and-insurance-coursework-3.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Marine Finance and Insurance - Coursework 3

Finance Analysis of Jones Limited(small, specialist marine engineering company based in Aberdeen)

... Present Values of Profit Streams to be received in next 3 years and 5 years can be calculated to see if they are positive. New investment needed is ?250,000. If the same debt/equity ratio for financing the project i.e 50% each is considered then debt burden will be ?125,000 and that will incur 8% interest charge. The interest charge comes to ?10,000. Since the dividend declared is 16%, weighted average cost of capital employed can be taken as arithmetic mean of debt and equity for both being equal in magnitude. Thus, the cost of capital to the company for this new project is 12% amounting to ?30,000 per year. The cost of capital needs to be deducted from the yearly earnings to arrive at the net cash flow to the company and that amounts...
9 Pages(2250 words)Coursework

Finance

...?FINANCE: Cape E-Distributors LTD Affiliation) a) Introduction to the business. Cape E-Distributors LTD Cape E-distributors LTD is a private limited online distribution company involved in the alcohol distribution business. This involves retail and wholesale selling of alcoholic beverages to consumers. This means, buying the inventory directly from the manufacturer and then distributing it to various outlets in the city at a margin. The business therefore plays an intermediary role by providing a channel for distributing the manufacturer’s products to the consumers. The only difference however is that we do our business online. This is an advantage to the business as an online presence gives it an increased global presence at the same time...
5 Pages(1250 words)Coursework

INSURANCE LAW

...?Insurance Law Question 1A: P&I and H&M Protection and indemnity (P&I) together with hull and machinery (H&M) are the two main types of marine insurance coverage.1 H&M is for the most part property cover in that its purpose is to insure the vessel’s actual value or any cost incurred relative to repairing or replacing the vessel. The hull refers to the ship itself and includes the ship’s engine. The hull also refers to the ship’s bunkers or fuel.2 In other words, H&M provides protection of the “shipowner’s investment”.3 P&I covers third party liabilities which are not a part of the H&M cover and as such compliments H&M insurance cover. Additional complimentary features arise out of cargo claims coverage. A shipowner’s liability relative...
20 Pages(5000 words)Coursework

Insurance Case Study

A further analysis in the case study reveals that Mr. Farid does not deny the answers he gave. He had stated he is the Manager and added that his work entailed inspection of construction sites and training of workers. With this information, the insurer still went ahead to insure him under non-manual work. A look at his medical health reveals a heart disorder which puts Mr. Farid at more risky state of leaving his employment. This analysis reflects on asymmetric information where full disclosure of the duties undertaken by Mr. Farid is not given. This led to adverse selection of Mr. Farid because the heart disorder deteriorated leading to employment forfeiture (Amy, 2007). The outdoor activities were the majority of tasks that Mr....
4 Pages(1000 words)Coursework

Advanced Marine Design

...? ADVANCED MARINE DESIGN By Presented to ADVANCED MARINE DESIGN Part A: The following paper will focus on the initial values that have been used to create an advanced marine vessel that is influenced on dimensional ratios and other aspects of designing the most appropriate type of marine ship. This paper particularly looks into the values that were deployed in the making of a patrol vessel, similar to the 114 USS Varuna. Substantial modifications have been installed in the design to include the hull form characteristics and standard dimensions to iterate certain design arrangements. This marine craft is a high-speed aluminum planing hull with similar screw diesel thrust and heavy buildup. The key facets that have been well-thought-out...
3 Pages(750 words)Coursework

Insurance companies Finances

...A Policy Holder’s Surplus= (Total Liabilities and Surplus – Total Liabilities) = (591000000 – 331000000) = $ 260000000 A)2) Policy holder’s surplus = paid in capital + unassigned surplus Paid in capital = 10% 0f policy holder’s surplus = 10% of 260000000 = $ 26000000 Unassigned Surplus = Policy Holder’s Surplus – paid in Capital = 260000000-26000000 = $ 234000000 A) 3) Horizon insurance Corporation is a property and casualty insurance company. The organization should look to invest the unassigned surplus in the assets of the organization. The investment in short term...
5 Pages(1250 words)Coursework

Finance

...Finance Finance Question An open book management is a business philosophy that aims at including all staffs into the affairs of a company in order to achieve success. These affairs include: sharing balance sheet and income statement with employees; encouraging them to utilize financial information in their day to day official work; training them in understanding financial figures; and sharing financial results of the company (Case, 1996). There are a number of benefits that exist when a company or hospital share its financial information with employees. The first benefit is increase of transparency. When staffs are able to access the company financials, they feel the existence of trust and transparency in management. As a result...
1 Pages(250 words)Coursework

RCP 3 Chapter 3

...RCP 3 Chapter 3 RCP 3 Chapter 3 Introduction In view of the numerous information assets that it already owns, Data Mart has no reason to be left out of the organizations already embracing the principle of least privilege. The principle dictates that each module within an IT environment (such as a user) should be capable of accessing only the information and relevant resources that it needs to accomplish the daily business routines. Besides, the principle also restricts the level of use of administrative credentials among administrators just to the administrative tasks. Here to discuss are varied user access levels together with the corresponding privileges that are associated with Data Mart-owned information assets. The Three Layer Scheme...
3 Pages(750 words)Coursework

Health Insurance

... of Phoenix Material Health Insurance Matrix As you learn about health care delivery in the United s, it is important to understand the various models of health insurance to develop a working knowledge as you progress through the course. The following matrix is designed to help you develop that knowledge and assist you in understanding how health care is financed and how health insurance influences patients and providers as important foundational information for your role as a future health care worker. Fill in the following matrix. Each box must contain responses between 50 and 100 words using complete sentences. Include APA citations for the content you provide. Origin: When was the model first used? What kind of payment system is used...
5 Pages(1250 words)Coursework

Some Companies Purchase Directors and Officers Liability Insurance

... Chalmers, J., L Dann & J Hartford (2002) Managerial Opportunism: Evidence from Directors’ and Officers’ Insurance Purchases, Journal of Finance, 57, 2, 609-636 Core, J., (1997) On the Corporate Demand for Directors’ and Officers’ Insurance, Journal of Risk and Insurance, 64, 1, 63-87 Core, J., (2000) The Directors’ and Officers’ Insurance Premium: An Outside Assessment of the Quality of Corporate Governance, Journal of Law, Economics & Organization, 16, 2, 449-477 O’Sullivan, N., (1997) Insuring the Agents: The Role of Directors’ and Officers’ Insurance in Corporate Governance, Journal of Risk and Insurance, 64, 3, 545-556...
8 Pages(2000 words)Coursework

International Corporate Finance of Automobile Market in Thailand and Malaysia

...INTERNATIONAL CORPORATE FINANCE A STUDY OF AUTOMOBILE MARKET IN THAILAND & MALAYSIA Table of Contents Page 2 Introduction 3 SWOT Analysis 4 Situation in Thailand 5 Situation in Malaysia 6 Recommendations 7 Conclusions 8 Bibliography 1 Abstract The automobile manufacturing environment in Thailand and Malaysia has been analyzed for an international manufacturer. A SWOT of the industry in both countries was prepared in this connection. Various government policies and several theories on international Trade have been examined. The ground realities were also discussed. It has been established that both the ASEAN member countries have pros and cons but the scale favours Thailand both on count of open FDI policy as well as better labour...
8 Pages(2000 words)Coursework

Finance and Business Perfomance Assignment: Budget for Dares Paint Limited

...Q1. Cash budget for Dare’s Paints Ltd. Is presented in the following table: Budget for Dare’s Paint Limited (All figures are in January February March April Totals Receipts Cash sales 12000 15000 8000 9500 44500 Credit sales 40000 48000 60000 32000 180000 Total receipts 52000 63000 68000 41500 224500 Expenses Fixed costs 13000 13000 13000 13000 52000 Direct labour 7000 7000 5500 6250 25750 Raw materials 20000 24000 28000 28000 100000 Variable overheads 2800 2800 2200 2500 10300 Lease 800 800 800 800 3200 Loan 0 0 10000 0 10000 Total expenses 43600 47600 59500 50550 201250 Opening balance 80000 88400 103800 112300 80000 Add receipts 52000 63000 68000 41500... Cash...
8 Pages(2000 words)Coursework

Contemporary Issues in Accounting and Finance in FASB

.... The recent failures of the financial institutions as well as the other institutions simply proved that there was a great need for the implementation of the fair value accounting principles and their impact on the firms’ financial position. Bibliography 1. Forbes, W. (2009). Behavioural Finance. Chichester: Wiley . 2. Hoque, Z. (2006). Methodological issues in accounting research: theories, methods and issues. New York: Spiramus Press Ltd. 3. McLeay, S., & Riccaboni, A. (2001). Contemporary issues in accounting regulation. New York: Springer. 4. Milne, M. J. (2001). POSITIVE ACCOUNTING THEORY, POLITICAL COSTS AND SOCIAL DISCLOSURE ANALYSES: A CRITICAL LOOK. Retrieved June 11, 2010, from http://www.commerce.adelaide.edu.au: http...
8 Pages(2000 words)Coursework

Finance Sources of Foreign Direct Investment

... Finance Sources of Foreign Direct Investment Part 1. Thunderbolt Plc can proceed with the proposal to establish a subsidiary in Utopia based on the following criteria: 1. Weighted Average Cost of Capital: The arrived WACC is 4% that is based on the 31 July, 2010 Statement of Financial Position of Thunderbolt. (See attached calculations). The WACC Is the rate used in looking for the NPV of the proposal. 2. Market Rate of Return for investment is done using the WACC and is also 4% this is also parallel with the target inflation rate of Utopia in foreseeable future. 3. Tax depreciation has been calculated using the Utopian government policy wherein depreciation in plant and equipment like the Thunderbolt project is allowed a 40...
10 Pages(2500 words)Coursework

Impact of Ethical Education or Training on Moral Values Concerning Finance and Accounting

...Impact of Ethical Education/or Training on Moral Values Introduction Integrity among finance and accounting professionals is essential to the success of any industry. Nowhere is effective management of ethical behavior of greater consequence than in the banking and insurance industries. Finance and accounting professionals have been in recent litigation because the nature of their working relationship has allowed them to share information that should otherwise not have been shared (Dimitris, 2009). The Sarbanes-Oxley Act of 2002 (SOX) is the legislative solution to the ethical scandals, such as Enron, Tyco, Qwest, Global Crossing, and WorldCom, involving accounting irregularities and fraud (Stephan, 2007). This Act implements extensive...
6 Pages(1500 words)Coursework

Organizational Behavior Weekly Articles from wither Newspaper, Internet, TV (Starting Oct. 3-Dec. 5, *10 Weeks, 10 Articles)

...Oct 3- Organizational Behaviour; Impact On Retention by Bruce Mayhew In this article, Bruce Mayhew focuses on how optimal satisfaction can be achieved by optimally tuning the behaviour of the employees. The article interested me mainly because it focuses on the key aspect of customer satisfaction, which is a relevant topic any anytime. As customers are the Kings of any business, they have to be catered effectively. For that, the employees need to know how to serve them, and to aid them, apt training, based on organizational behavioural concepts has to be given to the employees. The author states that 68% of customers leave any business mainly because they are upset with the treatment they have received from the customer service. “In other...
7 Pages(1750 words)Coursework

Political Economy of International Climate Finance

...Political Economy of International Climate Finance Climate finance is the financing for adaptive programs and projects as well as climate change mitigation by the international, regional and national bodies (Amoore, 2002). They include specific climatic financial aid and support mechanisms for adaptation and mitigation activities to enable and spur the transition towards climate-resilient development and growth, as well as low-carbon achievement through economic development and capacity building. Climate finance is used narrowly to refer to the public resource transfer to the developing from the developed countries (Sercu, 2009). The transfer is in the light of the UN Climate Convection duties of provision of additional and new funding...
8 Pages(2000 words)Coursework

Matrix of Marine Security Subsets

...Maritime Security inevitably embraces ALL the sub-sets of Security Studies in its widest sense. Does it? If so, why, and if not, why not? Maritime Security is a broad security topic that does not have a specific legal definition, but has been defined as the protection of intentional damage caused to marine resources through subversion, terrorism or sabotage (Beuger:9). Maritime security however does not only concern itself with the protection of the marine resources, but also ventures into other aspects of security strategies, as a supplemental strategy for enhancing security for the marine resources. Most importantly, Marine Security is a concept that cuts across a wide divide of security relations, owing to the fact that the security...
8 Pages(2000 words)Coursework

Applied Statistics for Finance and Economics Project Report

...APPLIED STATISTICS FOR FINANCE & ECONOMICS PROJECT REPORT Abstract The aim of this paper is to apply the econometrics knowledge learnt in the practical application. Two main variables of interest were used. STATA software was employed for the analysis of the data. Results showed that there exists a positive relationship between log returns of the variables y (‘dly’) and that of sap (‘dlsap’). Introduction We began by declaring the data as a time series data. This was followed by generating the log of the variables y (‘ly’) and sap (‘lsap’). We also generated the log returns of the variables y (‘dly’) and sap (‘dlsap’). The other sections present the results of the analysis starting with the descriptive statistics. Summary (Descriptive...
9 Pages(2250 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Marine Finance and Insurance - Coursework 3 for FREE!

Contact Us