Question
6. Choose the optimal SHP for a proposed tanker, given the costs and revenues tabulated below. The owner wants to earn a yield of
6. Choose the optimal SHP for a proposed tanker, given the costs and revenues tabulated below. The owner wants to earn a yield of (i') 18 percent. The ships are expected to last for 20 years and tax rate is 33 percent. (25P) Tanker SHP A B C D 10000 15000 20000 25000 Speed in knots Cargo: tons/year 12.8 310000 14.6 15.9 16.9 350000 380000 395000 Investment ($) 13400000 14000000 14600000 15000000 Annual Operating Cost ($) 1170000 1350000 1500000 1700000 t i' (1+i') N CR' N AAC YCR XP, CR' = ve CR = (1 + i') - 1 1-t
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started