Financial investment coursework (Private Equity)
 
 
这是一篇最多不超过1750字的研究生论文,
 
coursework里面有两个question,  请只写question 2 的1750字论文,不用管question 1的内容,谢谢。
 
 
here are two questions to answer.
 
Please show all work and how the answer was achieved. If you do use excel I still require to see the background work in your answer.
 
 
Guidelines
 
• Marks will be awarded for answers that have addressed the purpose of the assignment comprehensively. 
• Referencing accurately using the Harvard System. If you have actually quoted from ANY source. On the students portal is a link to the University's referencing guidelines 
• Evidence of a variety of information sources used will be an advantage
• Descriptions should be your interpretation, not a repeat of text!
• Analytical and a clear presentation and showing all workings, will be of benefit. No excel spread sheets to be used or handed in.
• Please use font size 12 or above
• No minimum word count but maximum 1750  words for qu.2
• Read latest trade journals on line or by hard copy.
• Both questions are equally weighted.
 
 
Question 1
 
Mannamead Shipping Company wish to purchase a second hand  Capesize bulk carrier to supplement their fleet. The ship is on the market for $20,000,000 and will cost an additional $1,000,000 for surveys, dry-docking and delivery.
The vessel has an expectant working life of eight years and the directors have surmised that the annual nett income for each of the eight years will be $4,168,750.
 
Using a discount rate of 10% you are to calculate
 
a) The Pay Back and
Discuss the advantages and disadvantages of this method.    15%
 
b) the NPV of the project, and
Discuss whether the directors will proceed and why or why not.           25%
 
c) The IRR and
Is this good enough for the directors to proceed or not         25%
 
d) The PI and
Explain the purpose of this tool for Investment appraisal       15%
 
e) Finally discuss whether this would be a suitable adventure
 for this company in the current market conditions.     20%
 
 
 
 
Question 2
 
In today’s current economic climate many companies have turned to Private Equity for additional funding.  Appraise whether this is good for a private, family owned maritime business in the current market.   30%
 
Find and then Investigate, a Private Equity company and show, in a report format, how this company has provided funds for the Maritime or Logistics Industry. This may be to individual companies or a group, (i.e. Private or Public). Give named examples of how the PE company injected funds into your examples.
    70%