Assess the potential acquisition of a ship. Which valuation methods we can use, in order to have an in-depth analysis whether it will be a successful investment or not.
Forecast the cash flow of the vessel. Describe and calculate the inflows and outflows that we have to use in the NPV valuation method.
Calculate the discount rate of return and interpret the result of the NPV including Sensitivity Analysis in our study.
The use of IRR and what is the difference between the NPV and the IRR valuation method. Describe the Pay-Back Period valuation method.
Calculate the TCE that makes the NPV zero and what it means.
Using the NPV valuation method how we can assess whether we have to sale / scrap the vessel or not. The main assumptions we have to make and how easily we can calculate it.