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Chase Shipping Case Study: 1. What is the decision that William Chace must make? 2. Analyze the feed grain cargo option using appropriate tools. Specify

Chase Shipping Case Study:

1. What is the decision that William Chace must make?

2. Analyze the feed grain cargo option using appropriate tools. Specify the assumptions you make. What is the expected cash flow if Chace selects this option? Note that case exhibit 1 provides the best combination of wheat and barley.

3. Analyze the steel cargo option using appropriate tools. Specify the assumptions you make. What is the expected cash flow if Chace selects this option? Note that you must analyze the expected

4. Prepare the CBCE for William Chaces decision. What additional factors (beyond the expected profits) influence your recommendation?

5. Assume that Chace will send the Glory on one of the two jobs. Should William Chace choose grain or steel? What does your recommendation imply about your valuation of the qualitative factors?

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