| OCEAN CARRIERS FORECAST | |||||||||||||||||||||||||||||||||||
| OVERALL ASSUMPTIONS ABOUT THE BOAT |
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| Cost of Boat (paid over 3 years) |
$ 39,000,000 | ||||||||||||||||||||||||||||||||||
| Inflation Rate – Operating Costs |
4.00% | ||||||||||||||||||||||||||||||||||
| Inflation Rate – Working Capital |
3.00% | ||||||||||||||||||||||||||||||||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | |||||||
| Date | 1/1/2001 | 12/31/2001 | 12/31/2002 | 12/31/2003 | 12/31/2004 | 12/31/2005 | 12/31/2006 | 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | 12/31/2022 | 12/31/2023 | 12/31/2024 | 12/31/2025 | 12/31/2026 | 12/31/2027 | |||||||
| Average Depreciation Years – Boat |
25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | ||||||||||
| Average Depreciation Years – Refurbishings |
5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | ||||||||||
| Salvage Value – Boat |
$ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | ||||||||||
| Average Tax Rate |
35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | ||||||||||
| Daily Revenue (“Daily Hire Rate”) |
$ 20,000 | $ 20,200 | $ 20,400 | $ 18,714 | $ 17,283 | $ 17,481 | $ 17,682 | $ 17,886 | $ 18,092 | $ 17,428 | $ 17,628 | $ 17,831 | $ 18,036 | $ 18,243 | $ 14,762 | $ 14,932 | $ 15,104 | $ 15,278 | $ 15,454 | $ 14,654 | $ 14,823 | $ 14,993 | $ 15,166 | $ 15,341 | $ 13,488 | ||||||||||
| Days Hired (per year) |
357 | 357 | 357 | 357 | 357 | 353 | 353 | 353 | 353 | 353 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | 349 | ||||||||||
| Daily Operating Costs |
$ 4,000 | $ 4,160 | $ 4,326 | $ 4,499 | $ 4,679 | $ 4,867 | $ 5,061 | $ 5,264 | $ 5,474 | $ 5,693 | $ 5,921 | $ 6,158 | $ 6,404 | $ 6,660 | $ 6,927 | $ 7,204 | $ 7,492 | $ 7,792 | $ 8,103 | $ 8,427 | $ 8,764 | $ 9,115 | $ 9,480 | $ 9,859 | $ 10,253 | ||||||||||
| Every 5 Year Refurbishing Costs |
$ 300,000 | $ 350,000 | $ 750,000 | $ 850,000 | |||||||||||||||||||||||||||||||
| PARTIAL INCOME STATEMENT (WITHOUT COST OF CAPITAL) |
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| Revenue | $ 7,140,000 | $ 7,211,400 | $ 7,282,800 | $ 6,680,898 | $ 6,170,031 | $ 6,170,793 | $ 6,241,746 | $ 6,313,758 | $ 6,386,476 | $ 6,152,084 | $ 6,152,172 | $ 6,223,019 | $ 6,294,564 | $ 6,366,807 | $ 5,151,938 | $ 5,211,268 | $ 5,271,296 | $ 5,332,022 | $ 5,393,446 | $ 5,114,246 | $ 5,173,227 | $ 5,232,557 | $ 5,292,934 | $ 5,354,009 | $ 4,707,312 | ||||||||||
| Operating Costs |
$ 1,428,000 | $ 1,485,120 | $ 1,544,525 | $ 1,606,306 | $ 1,670,558 | $ 1,717,914 | $ 1,786,630 | $ 1,858,096 | $ 1,932,419 | $ 2,009,716 | $ 2,066,421 | $ 2,149,078 | $ 2,235,041 | $ 2,324,443 | $ 2,417,420 | $ 2,514,117 | $ 2,614,682 | $ 2,719,269 | $ 2,828,040 | $ 2,941,161 | $ 3,058,808 | $ 3,181,160 | $ 3,308,407 | $ 3,440,743 | $ 3,578,373 | ||||||||||
| Operating Profit |
$ 5,712,000 | $ 5,726,280 | $ 5,738,275 | $ 5,074,592 | $ 4,499,473 | $ 4,452,879 | $ 4,455,116 | $ 4,455,662 | $ 4,454,057 | $ 4,142,368 | $ 4,085,751 | $ 4,073,941 | $ 4,059,523 | $ 4,042,364 | $ 2,734,518 | $ 2,697,151 | $ 2,656,614 | $ 2,612,753 | $ 2,565,406 | $ 2,173,085 | $ 2,114,419 | $ 2,051,397 | $ 1,984,527 | $ 1,913,266 | $ 1,128,939 | ||||||||||
| Depreciation | |||||||||||||||||||||||||||||||||||
| Boat | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | $ 1,360,000 | ||||||||||
| Refurbishing #1 | $ 60,000 | $ 60,000 | $ 60,000 | $ 60,000 | $ 60,000 | ||||||||||||||||||||||||||||||
| Refurbishing #2 | $ 70,000 | $ 70,000 | $ 70,000 | $ 70,000 | $ 70,000 | ||||||||||||||||||||||||||||||
| Refurbishing #3 | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | ||||||||||||||||||||||||||||||
| Refurbishing #4 | $ 170,000 | $ 170,000 | $ 170,000 | $ 170,000 | $ 170,000 | ||||||||||||||||||||||||||||||
| Taxable Income (without cost of capital) |
$ 4,352,000 | $ 4,366,280 | $ 4,378,275 | $ 3,714,592 | $ 3,139,473 | $ 3,032,879 | $ 3,035,116 | $ 3,035,662 | $ 3,034,057 | $ 2,722,368 | $ 2,655,751 | $ 2,643,941 | $ 2,629,523 | $ 2,612,364 | $ 1,304,518 | $ 1,187,151 | $ 1,146,614 | $ 1,102,753 | $ 1,055,406 | $ 663,085 | $ 584,419 | $ 521,397 | $ 454,527 | $ 383,266 | $ (401,061) | ||||||||||
| Income Tax | $ 1,523,200 | $ 1,528,198 | $ 1,532,396 | $ 1,300,107 | $ 1,098,816 | $ 1,061,508 | $ 1,062,290 | $ 1,062,482 | $ 1,061,920 | $ 952,829 | $ 929,513 | $ 925,379 | $ 920,333 | $ 914,328 | $ 456,581 | $ 415,503 | $ 401,315 | $ 385,964 | $ 369,392 | $ 232,080 | $ 204,547 | $ 182,489 | $ 159,085 | $ 134,143 | $ (140,371) | ||||||||||
| Net Income (without cost of capital) |
$ 2,828,800 | $ 2,838,082 | $ 2,845,879 | $ 2,414,485 | $ 2,040,657 | $ 1,971,371 | $ 1,972,825 | $ 1,973,181 | $ 1,972,137 | $ 1,769,539 | $ 1,726,238 | $ 1,718,562 | $ 1,709,190 | $ 1,698,037 | $ 847,936 | $ 771,648 | $ 745,299 | $ 716,789 | $ 686,014 | $ 431,005 | $ 379,872 | $ 338,908 | $ 295,443 | $ 249,123 | $ (260,689) | ||||||||||
| PARTIAL BALANCE SHEET (WITHOUT LIABILITIES AND EQUITY) |
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| Assets (including all net working capital) |
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| Net Working Capital (Inventory, A/R, A/P) |
$ 500,000 | $ 515,000 | $ 530,450 | $ 546,364 | $ 562,754 | $ 579,637 | $ 597,026 | $ 614,937 | $ 633,385 | $ 652,387 | $ 671,958 | $ 692,117 | $ 712,880 | $ 734,267 | $ 756,295 | $ 778,984 | $ 802,353 | $ 826,424 | $ 851,217 | $ 876,753 | $ 903,056 | $ 930,147 | $ 958,052 | $ 986,793 | $ 1,016,397 | ||||||||||
| Fixed Assets | |||||||||||||||||||||||||||||||||||
| Boat | $ 3,900,000 | $ 7,800,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | $ 39,000,000 | ||||||||
| Less: Accumulated Depreciation | $ 1,360,000 | $ 2,720,000 | $ 4,080,000 | $ 5,440,000 | $ 6,800,000 | $ 8,160,000 | $ 9,520,000 | $ 10,880,000 | $ 12,240,000 | $ 13,600,000 | $ 14,960,000 | $ 16,320,000 | $ 17,680,000 | $ 19,040,000 | $ 20,400,000 | $ 21,760,000 | $ 23,120,000 | $ 24,480,000 | $ 25,840,000 | $ 27,200,000 | $ 28,560,000 | $ 29,920,000 | $ 31,280,000 | $ 32,640,000 | $ 34,000,000 | ||||||||||
| Refurbishing #1 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | |||||||||||||||
| Less: Accumulated Depreciation | $ 60,000 | $ 120,000 | $ 180,000 | $ 240,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | |||||||||||||||
| Refurbishing #2 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | ||||||||||||||||||||
| Less: Accumulated Depreciation | $ 70,000 | $ 140,000 | $ 210,000 | $ 280,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | ||||||||||||||||||||
| Refurbishing #3 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | |||||||||||||||||||||||||
| Less: Accumulated Depreciation | $ 150,000 | $ 300,000 | $ 450,000 | $ 600,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | |||||||||||||||||||||||||
| Refurbishing #4 | $ 850,000 | $ 850,000 | $ 850,000 | $ 850,000 | $ 850,000 | ||||||||||||||||||||||||||||||
| Less: Accumulated Depreciation | $ 170,000 | $ 340,000 | $ 510,000 | $ 680,000 | $ 850,000 | ||||||||||||||||||||||||||||||
| Total Assets (including all net working capital) |
$ 3,900,000 | $ 7,800,000 | $ 38,140,000 | $ 36,795,000 | $ 35,450,450 | $ 34,106,364 | $ 32,762,754 | $ 31,659,637 | $ 30,257,026 | $ 28,854,937 | $ 27,453,385 | $ 26,052,387 | $ 24,991,958 | $ 23,582,117 | $ 22,172,880 | $ 20,764,267 | $ 19,356,295 | $ 18,618,984 | $ 17,132,353 | $ 15,646,424 | $ 14,161,217 | $ 12,676,753 | $ 12,023,056 | $ 10,520,147 | $ 9,018,052 | $ 7,516,793 | $ 6,016,397 | ||||||||
| FREE CASH FLOWS |
(3,900,000) | (3,900,000) | (27,511,200) | 4,183,082 | 4,190,429 | 3,758,571 | 3,384,267 | 3,374,489 | 3,375,436 | 3,375,270 | 3,373,689 | 3,170,537 | 3,136,667 | 3,128,403 | 3,118,426 | 3,106,650 | 2,255,908 | 2,258,959 | 2,231,930 | 2,202,719 | 2,171,221 | 1,915,468 | 1,883,570 | 1,841,816 | 1,797,538 | 1,750,381 | 1,239,707 | ||||||||
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | ||||||||
| NPV | $ -4,140,545.95 | ||||||||||||||||||||||||||||||||||
| IRR | 6.83% | ||||||||||||||||||||||||||||||||||
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