The prospects of the long term prospects of the capsize dry bulk industry can be classified as under:
1 Technology advancement that will meet the change in prices occurring due to the phase of increasing inflation.
2 On the basis of Demand and Supply: Due to increasing globalization the demand for goods and services will also increase and hence the future growth of the company probable good.
3 On the basis of investment: The investment cost in the further development of the firm that is going with new ship investment would involve huge cost of asset, secondly its payments and its depreciation on straight line method has reduced the returns but increased the cost. On the above these costs will increase with increase in inflation.
4 On the basis of returns: * The charter rates fluctuated frequently. They were classified as time charter rateand spot rate charter. * As incident from the case, we can see that r is greater than k, where r stands for rate of return and k stands for cost of capital. * NPV > 0 * On the basis of Risk- The presence of risk in the project is very high. But the Linn is risk oriented. So, the general rule returns says that more risk involves more returns.
How would you characterize the long-term prospects of the capsize dry bulk industry?
The prospects of the long term prospects of the capsize dry bulk industry can be classified as under:
1 Technology advancement that will meet the change in prices occurring due to the phase of increasing inflation.
2 On the basis of Demand and Supply: Due to increasing globalization the demand for goods and services will also increase and hence the future growth of the company probable good.
3 On the basis of investment: The investment cost in the further development of the firm that is going with new ship investment would involve huge cost of asset, secondly its payments and its depreciation on straight line method has reduced the returns but increased the cost. On the above these costs will increase with increase in inflation.
4 On the basis of returns: * The charter rates fluctuated frequently. They were classified as time charter rateand spot rate charter. * As incident from the case, we can see that r is greater than k, where r stands for rate of return and k stands for cost of capital. * NPV > 0 * On the basis of Risk- The presence of risk in the project is very high. But the Linn is risk oriented. So, the general rule returns says that more risk involves more returns.
How would you characterize the long-term prospects of the capsize dry bulk industry?
The prospects of the long term prospects of the capsize dry bulk industry can be classified as under:
1 Technology advancement that will meet the change in prices occurring due to the phase of increasing inflation.
2 On the basis of Demand and Supply: Due to increasing globalization the demand for goods and services will also increase and hence the future growth of the company probable good.
3 On the basis of investment: The investment cost in the further development of the firm that is going with new ship investment would involve huge cost of asset, secondly its payments and its depreciation on straight line method has reduced the returns but increased the cost. On the above these costs will increase with increase in inflation.
4 On the basis of returns: * The charter rates fluctuated frequently. They were classified as time charter rateand spot rate charter. * As incident from the case, we can see that r is greater than k, where r stands for rate of return and k stands for cost of capital. * NPV > 0 * On the basis of Risk- The presence of risk in the project is very high.