A Simple Key For ocean carriers harvard case solution Unveiled

Hong Kong or even the U.S? (Ocean Carriers employs a 9% price cut amount.) To analyze both of these eventualities, we decide to work out net money move and IRR for each year. The depth calculation is attached from the appendix plus the methodology of this solution is enlisted as down below. Formula

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In January 2001, Mary Linn, vice chairman of finance for Ocean Carriers, a delivery corporation with workplaces in The big apple and Hong Kong, was evaluating a proposed lease of the ship for a three-yr interval, beginning in early 2003. The customer was wanting to finalize the deal to fulfill his individual commitments and available pretty desirable conditions. No ship in Ocean Provider's present-day fleet met The client's necessities.

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The client was eager to finish The work to satisfy its have obligations and supplied really interesting terms. No ship in Ocean Carrier current fleet satisfies the requirements of The client. Mary Linn, therefore, had to choose regardless of whether lines should promptly Fee … Read through additional »

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