Ocean Carriers Final | Depreciation | Corporations

Ryan D.

Seelke Ocean Carriers Case
Forcasted Operating Cash Flow for New Capesize Vessel (25 Year Life)
Discount Rate

9%

Age of Ship

Event Year
-2
-1
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

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
26
27

Calendar year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027

Expected
Daily Hire
Rate

The number of
Operating days

Expected
Annual
Revenue

Daily
Operating
Costs

Annual
Operating
Costs

Depreciation

Capital
Expenditures
Depreciation

Total
Depreciation

Net Income (F-H-I)

Event Year
-2
-1
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

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
26
27

Calendar Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027

357
357
357
357
357
353
353
353
353
353
349
349
349
349
349
349
349
349
349
349
349
349
349
349
349

Price of Ship
-$3,900,000
-$3,900,000
-$31,200,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

$7,140,000
$7,211,400
$7,282,800
$6,680,898
$6,170,031
$6,170,793
$6,241,746
$6,313,758
$6,386,476
$6,152,084
$6,152,172
$6,223,019
$6,294,564
$6,366,807
$5,151,938
$5,211,268
$5,271,296
$5,332,022
$5,393,446
$5,114,246
$5,173,227
$5,232,557
$5,292,934
$5,354,009
$4,693,352

Capital
PV Outflows
Expenditures
-$3,900,000
-$3,577,982
-$26,260,416
$0
$0
$0
$0
$0
-$300,000
$0
$0
$0
$0
$0
-$350,000
$0
$0
$0
$0
$0
-$750,000
$0
$0
$0
$0
$0
-$850,000
$0
$0
$0
$0
$0

Total Cash Flow for a 25 Year Capesize Carrier
Operating Cash Flow + Investment Cash Flow
Op. Cash Flow

+
$35,174,444.69

+

Inv. Cash Flow
(34,805,887.40)

Operations
Cash Flow

Discounted
Operating Cash
Flow

Total Op. Cash
Flow

$35,174,444.69
$20,000
$20,200
$20,400
$18,714
$17,283
$17,481
$17,682
$17,886
$18,092
$17,428
$17,628
$17,831
$18,036
$18,243
$14,762
$14,932
$15,104
$15,278
$15,454
$14,654
$14,823
$14,993
$15,166
$15,341
$13,448

$4,000
$4,160
$4,326
$4,499
$4,679
$4,867
$5,061
$5,264
$5,474
$5,693
$5,921
$6,158
$6,404
$6,660
$6,927
$7,204
$7,492
$7,792
$8,103
$8,427
$8,764
$9,115
$9,480
$9,859
$10,253

$1,460,000
$1,518,400
$1,579,136
$1,642,301
$1,707,993
$1,776,313
$1,847,366
$1,921,260
$1,998,111
$2,078,035
$2,161,157
$2,247,603
$2,337,507
$2,431,007
$2,528,248
$2,629,378
$2,734,553
$2,843,935
$2,957,692
$3,076,000
$3,199,040
$3,327,001
$3,460,081
$3,598,485
$3,742,424

$1,560,000
$1,560,000
$1,560,000
$1,560,000
$1,620,000
$1,620,000
$1,620,000
$1,620,000
$1,620,000
$1,630,000
$1,630,000
$1,630,000
$1,630,000
$1,630,000
$1,710,000
$1,710,000
$1,710,000
$1,710,000
$1,710,000
$1,730,000
$1,730,000
$1,730,000
$1,730,000
$1,730,000
$1,560,000

$60,000.00
$60,000.00
$60,000.00
$60,000.00
$60,000.00
$70,000.00
$70,000.00
$70,000.00
$70,000.00
$70,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
$150,000.00
$170,000.00
$170,000.00
$170,000.00
$170,000.00
$170,000.00
$0.00

$1,560,000
$1,560,000
$1,560,000
$1,560,000
$1,680,000
$1,680,000
$1,680,000
$1,680,000
$1,680,000
$1,700,000
$1,700,000
$1,700,000
$1,700,000
$1,700,000
$1,860,000
$1,860,000
$1,860,000
$1,860,000
$1,860,000
$1,900,000
$1,900,000
$1,900,000
$1,900,000
$1,900,000
$1,560,000

$4,120,000
$4,133,000
$4,143,664
$3,478,597
$2,782,038
$2,714,480
$2,714,380
$2,712,498
$2,708,365
$2,374,049
$2,291,015
$2,275,416
$2,257,057
$2,235,800
$763,690
$721,890
$676,743
$628,087
$575,754
$138,246
$74,187
$5,556
-$67,147
-$144,476
-$609,072

Forcasted Investment Cash Flow for Capesize Carrier (25 Year Life)
Age of Ship

Discounted
Net Income

=
=

Net Cash Flow

$368,557

Working
Capital

$500,000
$515,000
$530,450
$546,364
$562,754
$579,637
$597,026
$614,937
$633,385
$652,387
$671,958
$692,117
$712,880
$734,267
$756,295
$778,984
$802,353
$826,424
$851,217
$876,753
$903,056
$930,147
$958,052
$986,793
$1,016,397
$0

Change in
Working
Capital

$500,000
$15,000
$15,450
$15,914
$16,391
$16,883
$17,389
$17,911
$18,448
$19,002
$19,572
$20,159
$20,764
$21,386
$22,028
$22,689
$23,370
$24,071
$24,793
$25,536
$26,303
$27,092
$27,904
$28,742
$29,604
-$1,016,397

WC

-$500,000
-$15,000
-$15,450
-$15,914
-$16,391
-$16,883
-$17,389
-$17,911
-$18,448
-$19,002
-$19,572
-$20,159
-$20,764
-$21,386
-$22,028
-$22,689
-$23,370
-$24,071
-$24,793
-$25,536
-$26,303
-$27,092
-$27,904
-$28,742
-$29,604
$1,016,397

Investment Cash
Flow
-$3,900,000
-$3,900,000
-$31,700,000
-$15,000
-$15,450
-$15,914
-$16,391
-$316,883
-$17,389
-$17,911
-$18,448
-$19,002
-$369,572
-$20,159
-$20,764
-$21,386
-$22,028
-$772,689
-$23,370
-$24,071
-$24,793
-$25,536
-$876,303
-$27,092
-$27,904
-$28,742
-$29,604
$1,016,397

Discounted
Investment
Cash Flow
Total Inv. Cash Flow
-$3,900,000
-$34,805,887
-$3,577,982
-$26,681,256
-$11,583
-$10,945
-$10,343
-$9,773
-$173,346
-$8,727
-$8,247
-$7,793
-$7,364
-$131,396
-$6,575
-$6,213
-$5,871
-$5,548
-$178,548
-$4,954
-$4,681
-$4,424
-$4,180
-$131,605
-$3,733
-$3,527
-$3,333
-$3,150
$99,208

$3,181,396
$2,927,921
$2,693,097
$2,074,173
$1,521,870
$1,362,306
$1,249,776
$1,145,788
$1,049,580
$844,057
$747,280
$680,910
$619,648
$563,130
$176,468
$153,036
$131,620
$112,070
$94,250
$20,762
$10,222
$702
-$7,787
-$15,371
-$59,450

$5,680,000
$5,693,000
$5,703,664
$5,038,597
$4,462,038
$4,394,480
$4,394,380
$4,392,498
$4,388,365
$4,074,049
$3,991,015
$3,975,416
$3,957,057
$3,935,800
$2,623,690
$2,581,890
$2,536,743
$2,488,087
$2,435,754
$2,038,246
$1,974,187
$1,905,556
$1,832,853
$1,755,524
$950,928

$4,386,002.17
$4,033,064.73
$3,706,990.25
$3,004,350.50
$2,440,887.32
$2,205,441.21
$2,023,294.73
$1,855,438.46
$1,700,635.67
$1,448,465.80
$1,301,783.98
$1,189,629.21
$1,086,362.67
$991,308.93
$606,264.47
$547,344.62
$493,370.38
$443,951.63
$398,728.20
$306,107.30
$272,006.25
$240,871.65
$212,551.94
$186,774.64
$92,817.99

000.Final Results $39.000 Discounted 27 Years 15 Year Option (Net Cash Flow) 25 Year Option (Net Cash Flow) .

564 $6.140.200 $20.396 $2.143.921 $2.049 $2.000.642.937 633.680.057 $747.351 $2.448 $19.264 $5.400 $1.260 $1.000 $1.049.000 $1.572 $20.870 $1.365 $4.211.000 $0.313.000.200.257.548 $1.680.927.900.391 -$16.518. Cash Cash Flow Flow -$3.450 -$15.898 $6.660 $6.628 $17.000 -$15.00 $0.145.714.049 $3.000 $1.990 $3.914 -$16.028 $756.282.000 $1.636 $1.002 -$369.703.294.365 $2.000 $15.00 $60.428 $17.000 $1.400 $18.560.62) = = Net Cash Flow $1.693.000 $1.957.762 357 357 357 357 357 353 353 353 353 353 349 349 349 349 349 $7.031 $6.000 $1.867 $5.159 $20.746 $6.000 $4.260.000 $4.326 $4.871 -$5.295 $1.597 $2.793 -$7.681.706.295 Ship Scrap Price $5.346 -$8.979.560.386.914 -$16.620.776 $1.910 $619.958 692.603 $2.991.158 $6.979.000 $1.155.000 530.793 $6.800 $6.313 $1.396 -$6.172 $6.004.648 $563.161.764 -$21.000 $1.754 579.386 -$22.125 $4.000.921.380 $4.883 -$17.000 $1.000.431.000 -$15.133.152.159 -$20.00 $60.264 .710.982 -$26.097 $2.394.583 -$10.026 614.000 $1.000 515.000 $7.800 $913.738.450 546.152.364 -$131.366 Discounted Investment Total Inv.151.620.036 $18.714.916 Working Capital 500.000 $1.386.092 $17.159 -$20. Cash Flow Flow Flow $31.000 $1.007 $2.560.391 $16.900.000 $1.000 2001 -$3.Forcasted Operating Cash Flow for a Capesize Carrier (15 Year Life) Discount Rate 9% Disposal Value ### PV of Disposal$1.000.900.000 -$3.450 $15.252.130 $211.807 $5.015 $2.000 $1.386 -$22.416 $3.712.291.000 $1.388.000 $1.028 $756.708.630.935.00 $0.000 $1.900.330.448 -$19.00 $70.019 $6.914 $16.247.391 -$316.580 $844.392.521.700.235.000 $4.975.232.002 $4.560.00 $60.275.366 $1.306 $1. -$500.441 $2.002 -$19.295 0 Change in Working Capital $500.680.560.620.700.575 -$6.773 -$173.038.086.776.170.000 $4.000.710.000 $1.630.758 $6.057 $3.389 -$17.364 562.623.700.002 $19.993 $1.000 $1.000.247 -$7.000 -$33.680.700.343 -$9.000 $5.380 $2.900.679 $4.000 $1.577.00 $60.000 $1.155.714 $17.157 $2.385 652.693.366.181.400 $7.000 -$15.000 $1.480 $2.038 $4.00 $0.499 $4.911 $18.111 $2.241.000 2003 $0 2004 $0 2005 $0 2006 $0 2007 $0 2008 $0 2009 $0 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 2015 $0 2016 $0 2017 $0 Total Cash Flow for a 15 year Capesize Carrier Operating Cash Flow + Investment Cash Flow Op.416 $0 $0 $0 $0 $0 -$300.000 -$31.700.911 -$18.476 $6.120.389 $17.480 $4.000.887 $2.074.084 $6.507 $2.764 $21.938 $4.337.000 $20.386 $22.630.136 $1.831 $18.597 $4.295 W.498 $2.630.572 -$20.478.028 -$756.280 $680.448 -$19.374.00 $70.117 712.700.784 $1.450 -$15.000 $0 $0 $0 $0 $0 -$350. Cash Flow $31.727 -$8.416 $2.886 $18.883 $17.800 $2.920.883 -$17.462.690 Discounted Ship Scrap Price Investment Cash Flow -$3.295 $3.577.061 $5.387 671.880 734.213 -$5.065 $3.528.927 $1.855.000 $1.283 $17.129 $5.836 -$3.440.000 $1.301 $1.438 $1.620.664 $3.782.707.847.998.000.366 Age of Ship Event Year -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Calendar year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Expected Daily Hire Rate The number of Operating days Expected Annual Revenue Daily Operating Costs Annual Operating Costs Depreciatio n Depreciatoin of Capital Investment Total Depreciation Net Income (F-H-K) Discounted Net Income Discounted Operations Cash Operating Cash Total Op.000 2002 -$31.078.498 $4.00 $70.788 $1.223.466 $1.900.023.000 $1.10 + + Inv.035 $2.481 $17.680.920 $20. Cash Flow (33.000 $15.000 $1.572 -$20.015 $3.267 756.630.397 Calendar Year Price of Ship 2000 -$3.309 $606.460.000 $1.00 $70.00 $1.00 $0.911 -$18.205.394.945 -$10.057 $2.000 $1.629 $1.248 $1.389 -$17.682 $17.000.664 $5.232.00 $70.690 Totals Forcasted Investment Cash Flow for Capesize Carrier (15 Year Life) Age of Ship Event Year -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 PV Cash Capital Outflows Expenditures -$3.680.474 $5.160 $4.256 -$11.700.243 $14.363 $991.170.C.404 $6.579.560.000 -$15.680.000 $5.173 $1.835.038 $2.000 $0 $0 $0 $0 $0 -$33.693 $5.00 $60.921 $6.189.033.000.000 -$3.637 597.448.249.560.560.074.362.000 $1.301.764 -$21.620.982 -$26.

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