This website uses cookies to ensure you have the best experience. Learn more

Climax Shipping Company Essay

1046 words - 5 pages

CLIMAX SHIPPING COMPANY

Brief Summary

Climax shipping company is engaged mainly in the transportation of coal from nearby mines and to steel mills, public utilities, and other industries in Pittsburgh area. Occasionally, the company’s steamboats which were all powered by steam power, carries cargoes to places as far as New Orleans. Climax shipping was thinking of whether repairing Cynthia the company’s steam riverboats or replacing the steamboat with a new diesel-powered boat would be more beneficial to the company.
The facts provide that immediate rehabilitation of steamboat will bring additional useful life of 20 years at an amount of $483,000, and additional spare parts could ...view middle of the document...

Occasionally, the company’s steamboats which were all powered by steam power, carries cargoes to places as far as New Orleans.

1. Availability of Funds – the company is experiencing a limited resources, so it is only imperative for the company to use the resources wisely. Climax shipping should consider the availability of funds as the best way of using such fund despite of its capacity to buy diesel-powered boats.
2. City Smoke Ordinance – in two-year time the law mandates stroker firing. While Cynthia is still hand-fired. Should stroker conversion be incorporated during the rehabilitation an additional amount of $168,000.00 will be incurred by the company.
3. Growth policies and risk evaluation – Though the company has the sufficient funds to buy four diesel-powered engine, but there are alternative uses of funds. The management was considering to have an estimated return of at least 10 percent after tax.

Alternative Courses of Actions:
1. Rehabilitate Cynthia with stroker conversion immediately
Advantages
- Additional usefule life of 20 years for Cynthia
- Cash inflow of $436,887(exhibit 1)
- The spare parts from retired boats can still be utilized as a higher value. These parts will be considered as savings since the same can no longer be used on any of the other Climax steamboats.
- The company’s annual operating costs are reduced from $853,260 to $804,100.00 after rehabilitation with the stroker conversion done at the same time.
Disadvantages
- The company will incur negative cash inflows from this investment project. The cost of investment in the amount of $348,280 will not yield the desired rate of 10%.

2. Delay the rehabilitation of Cynthia with stroker conversion for two years
Advantages
- the company annual operating cost will be reduced from &853,260 to $804,100.00 upon rehabilitation with the stroker conversion done at the same time.
- Additional useful life of 20 years for Cynthia
- Cash inflow of $436,887.00

Disadvantages
- Additional cost te be incurred associated with the delay in conversion of Cynthia to being stroker fired.
- The company will be...

Other Essays Like Climax Shipping Company

Living In A Cashless Society Essay

1637 words - 7 pages Money in a traditional sense no longer exists. Money is becoming much of a concept than a physical material, and most ordinary bitter have not see the reality of the switch. People today are using credit and debit cards on a regular basis and in everyday situations such as meal purchased at fast food, highway tolls, clothing, groceries, gas stations, etc. all of these means of systems could be regarded as a cashless society or world. The question

The French And Indian War: The "Real" First World War

1955 words - 8 pages The Seven Years War, or more commonly referred to as “The French and Indian War”, has been called the true First World War. In this book The French and Indian War: Deciding the Fate of North America, the author and historian Walter R. Borneman paints a detailed and elaborate picture that justifies the claim of it being the first true war of global proportions. If ever there truly was a climax to the never ending feud of the European

Is The Use Of Animals In Medical Research A Necessary Measure?

1513 words - 7 pages Throughout history, animals have been used in experiments to test product safety and obtain medical knowledge that benefits both humans and animals alike. Every year there are numerous medical breakthroughs, such as medications and surgical instruments, which are tested on animals to insure their safety before they are deemed acceptable for human use. Even though the results of the experiments saved millions of human lives, they are also

Education And The Evolving Job Market

2363 words - 10 pages The lives of students today are changing. They are preparing for lives and jobs that have never before existed. If teachers hope to have a significant and worthwhile impact on these quickly changing lives, they must change the way they think, prepare, and instruct our future generations. Children cannot afford to have teachers who remain stagnant in their methods and ideals. Students crave instructors that are willing to allow them to tap

Young And Relentless

1737 words - 7 pages There are numerous influences that can be responsible of teenager’s behaviors and attitude as they develop. One factor that is important to these behaviors is parental figures being over involved or uninvolved in their children’s lives. Many of these effects include illegal substance abuse, rising sexual activity, underage alcohol consumption, and tobacco use. Studies show parental participation plays a key role in the characteristics developed

The Natural Law Theory

1231 words - 5 pages Obeying by the natural law theory is the only true and moral way to live life; especially a life lived in God’s image. God’s presence is a guiding factor to obtaining a moral and virtuous life, which can only be obtained by following the natural law theory. God created a set of laws as a supreme guide for humans to live life, like any law these laws were created to ensure wellbeing for everyone. The laws he created are the civil law, the natural

Resolved: Presidential Signing Statements Threaten To Undermine The Rule Of Law And The Separation Of Powers

1811 words - 8 pages The subject of signing statements has created much debate among the houses of Congress, government officials, and the public alike. These signing statements fall under the categories of constitutional and legislative history signing statements. Constitutional signing statements are those in which the president deems certain provisions of the legislation as unconstitutional, therefore they should not be enforced (Bradley & Posner, 2006

Oppressive Systems Of Government In Egypt And Animal Farm

1529 words - 7 pages As in Egypt, Orwell demonstrates through his allegorical novel “Animal Farm” that leaders are able to establish and maintain power over a people, and in turn create an oppressive and corrupt government system. Orwell shows the significant difference in the education and levels of knowledge in the animals, and how the government takes advantage of this difference. The split between the levels of intelligence is portrayed in the first chapter when

The Pathway To Psychosis

1415 words - 6 pages “How all occasions do inform against me” is a line from act IIII, scene IIII of William Shakespeare’s Hamlet. This line, spoken by Hamlet, expresses his emotional state as he is currently overwhelmed by the death of his father, the king of Denmark, and the situation surrounding it. After Hamlet learns of his father’s death he finds out that his mother has married Claudius, Hamlet’s uncle. On top of all of that, Hamlet soon after

Rated “M” For “More Censorship Not Needed”

1241 words - 5 pages Since the moment video games became a commercial success there have been people who have pushed for unfair amounts of censorship to be placed upon the content of the games and its availability to children. These groups push for increased regulations on content but there is already an appointed group to handle this issue, the ESRB. Even though there has been an increase in mature content in the video game industry, increased censorship is not

Four Components Of A Legally Astute Social Media Marketing Manager

1914 words - 8 pages to that they can give you legal advice on how to handle a given situation at a specific time. They can also provide information throughout the duration of the project. They can use Facebook to interact about new promotions that a company has going on to see what the buzz will be, for a new product that is being developed, this could help the company find the target audience for the product. So it does not waste time paying for advertising, during

Related Papers

List Of Companies Essay

2873 words - 12 pages Pakistan Ltd. 23. Noon Sugar Mills Ltd. 4. Pakistan Telephone Cables Ltd 24. Pangrio Sugar Mills Ltd. 5. Pak Elektron Ltd. 25. Premier Sugar Mills & Distillery Company Ltd. 6. Climax Engineering Co. Ltd. 26. Sakrand Sugar Mills Ltd. 7. Philips Electrical Industries 27. Sanghar Sugar Mills Ltd. 28. Shahmurad Sugar Mills Ltd. Food: Sugar 1. Adam Sugar Mills Ltd. 29. Shahtaj Sugar Mills Ltd. 2. Al-Abbas Sugar Mills Ltd. 30

The Separation Of Capital Ownership And Control

1577 words - 7 pages have very strong incentives to monitor or oversee detailed performance of one particular company among lots firms he has invested. The success or failure of the team may not influence manager’s current salary immediately, though the information suggests how talented the executive is on managing a team and that will determine his/her future potential salary growth. As a result, chief executives are supposed to have interests in success of

The Versatility And Flexibility Of Oled's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages Roman emperor Julian the Apostate and Christian leader Antony both exhibited many qualities of character during their existence. Both of them led very distinctive lives although shared several ethical values. Book 25 of “The Later Roman Empire” and the book “Early Christian Lives” show concrete evidence of this. In the following essay, I will argue how both leaders’ lives were devoted to their religious beliefs and their mutual cardinal virtues