Key to happiness

The term toxic is defined as the â€Å"suffering from exposure to poisonous substances†. We sometimes refer to ourselves as toxic when we need to get so many things done. Productivity, if not controlled, or if forced to increase, can be harmful and therefore, toxic. While it is the blood that runs through the vines of workers and employees, it could become the poison that would kill the system if it goes out of hand. The workers do not notice that in the long run they will lose all their energy and productivity would decline along with their will to work.Everybody seems to have a task to accomplish even during weekends. When it rains, it pours. This is not only applicable to problems in life, but to the tasks in school or in the workplace as well. We are compelled to accomplish so much in so little time that we neglect out health and our relationships in life. Sometimes, we think accomplishing more work in shorter time period would make us more productive, but in reality, it j ust makes us tired with no energy left for the coming tasks. The whole American society has become a walking and talking group of people who live and breathe work and productivity because as others think, working more brings in more money which spells happiness.On the contrary, though, this addiction to work could be attributed to the fact that this society promotes achievement and perfection. In an environment where people thrive on stress, it is but normal to see employees who still work even on vacation. Their jobs have become their lives and they cannot seem to have the ability to detach themselves from it even just for a while. Many professionals today think that they have to achieve superhuman productivity in order to be worthy in the workplace.They are often tormented by guilt and anxiety to deliver their best in their jobs.   It seems that their happiness lie in the work that they bury their heads into. The relation that exists between the mind and the body is very intimat e. When one is affected, the other sympathizes. The condition of the mind affects the health to a far greater degree than many realize. Many of the diseases from which men suffer are the result of mental depression. Grief, anxiety, discontent, remorse, guilt, distrust, all tend to break down the life forces, and to invite decay and death.Disease is sometimes produced, and is often greatly aggravated, by the imagination. Many are lifelong invalids who might be well if they only thought so. Many imagine that very slight exposure will cause illness, and the evil disease, the cause of which is wholly imaginary. Courage, hope, faith, sympathy, love, promote health and prolong life. A contended mind, a cheerful spirit, is health to the body and strength to the soul. â€Å"A merry [rejoicing] heart doeth good like a medicine.† In the treatment of the sick, the effect of mental influence should not be overlooked. Rightly used, this influence affords one of the most effective agencies for combating disease. I tend to disagree that people need to lessen their desires just so they can achieve happiness.In Joe Robinson’s Blackberry’s Don’t Fit in Bikinis, he discussed how the American society is fast becoming a society struck with Obsessive-Compulsive Productivity or OCP. The article talked about how vacation or other leisure activities could actually increase productivity. The article gave emphasis on the fact that people need to rest and recharge in order to increase productivity. It is necessary for the human mind to rest to be able to have the ability to think and work again. There is the continuous wanting for more. Perhaps it is this kind of obsession that I am against.Robinson put it best when he used the term Obsessive-Compulsive Productivity to describe what is wrong with most American workers in the present time. This is the fixation to put out results althroughout the workday. It can also be considered an addiction as the people with this are usually workaholics. They are obsessed with accomplishing their tasks and work endlessly to deliver what is expected from them. They usually aim high and expect a lot from themselves and from others.â€Å"Nearly 40% of Americans work more than 50 hours a week (Robinson Undated).† This is not surprising since it is a known fact that the nation has an insistent work ethic. What is alarming is that they work even on vacation and cannot really give themselves the break that they need and deserve. They rarely disconnect from work and they even bring their tasks in the comfort of their own homes. Naturally, they do not get much sleep and lack the rest and recreation that they badly need. Happiness must not be equated with just the work that they do but with people and relationships.In a way, this could be attributed to the high-maintenance lifestyle of the Americans. They need to earn more in order to maintain the lifestyle that they have. Thus, they feel like they have t o earn much to provide for their families. They tend to prioritize their careers over their families, which destroys the very essence of keeping a family.  Some are just plain overachievers. They set high expectations and goals for themselves and they work very hard to make sure that their outputs meet the objectives that they set. The problem with this kind of employees is that they get frustrated easily when they do not reach their goals or when their co-employees fail to meet their expectations.The American society should be alarmed because if this behavior continues until the following years, most of the employees will be victims of burnouts, they will not be able to perform well, thus productivity will eventually decrease and will result into low turnout of outputs in the workplace. The values that are being instilled in the minds of the young ones will be the same as the values kept by their predecessors. Americans place a high value on their competence and ability to do the tasks given to them. Their self-worth largely depends on what they are capable to do more than what they are made of. This will be passed on to the next generation and a new generation of workaholics in the society will be created.Americans do not realize that the quality of life is sacrificed because of these misconceptions about work and productivity. When one’s life revolves around his career, his relationships suffer. He does not have much time even for himself, how much more for other people? This is dangerous because in time the nation will become a nation obsessed with accomplishments and work productivity, not valuing what truly matters in this life like family and friends. In fact, the personal well-being is at stake because not only do these employees tend to sacrifice their families, they disregard their health as well.â€Å"A study last year by the University of Massachusetts Medical School found that chronic 12-hour workdays increase your risk of illness or inj ury by 37%. Work without time to think, analyze or recharge feeds knee-jerk performance and the hurry-worry of stress. Everything appears urgent when there isn’t time to judge what is truly urgent and what isn’t (Robinson undated).†Robinson emphasizes the importance of taking a vacation and really enjoying it. Every faithful employee must have the chance to detach themselves from their offices at least at a regular given time period. They should be able to stop and smell the flowers and then get back to work. They will not necessarily slack off but just a slow down a little. Some cannot detach themselves from their work that even on vacation, they always put their work first. A vacation would provide the mind to rest for a while and prepare it for the challenges ahead. It will slow down the processing and give the mind and the body the opportunity to re-energize and prepare for the coming tasks.Studies also showed that the performance in the workplace drastically improves after a vacation. The H Group, an investment services company in Salem, Oregon, doubled the income after the owner, Ron Kelemen increases the time off of the employees to three and a half weeks (Robinson 2006).   Another example is Jancoa, a Cincinnati cleaning company. When they changed to a three-week vacation policy, the productivity of their workers flew high enough to cut overtime and the profits increased to fifteen percent (Robinson 2006).  This just proves and shows that continuous productivity is not the answer to job competence and efficiency. It is wise to sit back for a while and do no work than to continuously work, produce mediocre outputs and get tired in the process.If not properly monitored, this might go on and on and will be passed to the next generation of employees who will also be obsessed with productivity. It looks like the trend is most likely to continue in the future because at the rate we are going, we will not just going to be a society, bu t a nation of workaholics. We should really learn to stop and smell the flowers, we should learn to rest for a while and enjoy a vacation.Obsessive-compulsive productivity is likely to continue in the future because there are no indications that the society is going to change soon. The technological innovations aggravate the situation. The more gadgets are produced to make work easier for humans, the more they will be addicted to productivity. These technological gadgets have a deep effect on the values of American employees. We firmly believe that because these equipment exists, we need to get more work done in the least possible time. What we do not know that these innovations were developed for us to finish our work faster and have more time for rest and recreation.All work and no play make John a doll boy. This is especially true for the students in the university and the corporate people in the business district. We need to let ourselves rest for a while, then wake up to get ba ck to work. Because if we just go through, we might not have enough energy left after a couple of years. Contrary to what other people think that they should work and work and work to get there, it is better if they should work and rest to go back again, or work and rest in the weekend, and then go back to work.Dr. Steven E. Hyman is Director of the National Institute of Mental Health (NIMH), the component of the National Institutes of Health charged with generating the knowledge needed to understand, treat and prevent mental illness. He continues to direct an active research program in molecular neurobiology focused on how neurotransmitters, especially dopamine and glutamate, alter the expression of genes in the striatum producing long-term changes in neural function that can influence behavior. Hillary Clinton was a former First Lady who was elected to the United States Senate and the first woman elected stateswide in New York.Given this background, we can say that all these autho rs are experts in their own fields of expertise. They are biased about their topics because they had been exposed to that all their lives. They have conducted the results of studies similar to these for many years. That accounts for their respective biases. One need not lessen one’s wants because this will also create uneasiness. |One just have to be happy with what he has and then strive and plan for the best.Sometimes, this inclination for more is a mental disease. I am inclined to support the theory that mental illness is indeed a disease and is treatable. This could be called the â€Å"organic† theory which supports the biochemical causation of mental disease. This holds that what we call the mind is the interplay of the nerve cells of the body. Therefore, the mind, at the very least, is indirectly subject to the ordinary physical and chemical laws that govern those cells. I believe that even if a mental disorder arises from an outside stress, it is the neurons tha t respond to the stress either well or poorly, and the varying ability to respond to the stress healthfully must have its basis in a biochemical difference. Favoring the organic theory is the fact that some forms of mental disease have indeed been found to have a biochemical basis.Sad and dissatisfied for now, but we need not be in the future. People just need to me more aware and appreciative of the little things. Simple acts of love, safe arrivals, peaceful exchanges between neighboring countries and people helping each other are noteworthy events. We feed our minds either bleak or beautiful and happy imagery. Why not inspire ourselves and choose to be happy no matter what happens. Wanting to be happy and more loving on a sustained basis directs us to seek peaceful roads less traveled.REFERENCESBobgan, M and Bobgan, D. 1987. Mental Illness is Not a Disease. Mental Illness.  Greenhaven Press.Key to Happiness. http://www.heraldsun.com.au/?nk=43975a015ad5196135913d0f574b7afc-148838 8529Robinson, John. Blueberry’s Don’t Fit In Bikinis. Los Angeles Times. 2006.

What the In-Crowd Wont Tell You About Term Paper Writing Essay Help

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Emily Dickinsons Because I Could Not Stop for Death Essays

Emily Dickinsons Because I Could Not Stop for Death In Emily Dickinson’s â€Å"Because I could not stop for Death â€Å" (448), the speaker of the poem is a woman who relates about a situation after her death. The speaker personifies death as a polite and considerate gentleman who takes her in a carriage for a romantic journey; however, at the end of this poem, she finishes her expedition realizing that she has died many years ago. The poem contains six quatrains, and does not follow any consistent rhyme scheme. Every line starts with a strong beat and ends up with a weak beat. The first and third lines in each stanza have iambic tetrameter, but the second and fourth lines do not contain any consistent meter. The feet generate a rhythm†¦show more content†¦She is so naà ¯ve and adolescent that she leaves her worldly activities and gets ready to go out and spend time with her boyfriend. She gives him her possessions: her â€Å"labor† and â€Å"leisure† too (l. 7) for his politeness. Figuratively, in stanza three, the poem symbolizes the three stages of life: childhood represented by â€Å"Children strove† (l. 9), youth represented by â€Å"the Fields of Gazing Grains† (l. 11) and the end of the life represented by â€Å"the Setting Sun† (l. 12). On the way of her journey, the speaker views children struggling to win in the race in School. She also sees cereal grasses collectively in the field, and at last the speaker perceives with her eyes that the sun is setting on the way of her journey. This stanza gives us a clue of her passing by this world; however the speaker is not able to figure out that she is dead. She simply thinks the sun is setting on a regular basis. The first line of stanza four â€Å"Or rather-- He passed Us—â€Å" (l. 13) demonstrates that the speaker is uncertain about her existence in the world. Now she feels that her life symbolized by the sun is passing by. She becomes chilled by the â€Å"dews† (l. 14). Lines three and four in this stanza illustrate the reason for her coldness. The speaker is attired in a light â€Å"Gown† (l. 15) and cape or â€Å"Tippet† made of â€Å"Tulle† (l. 16), which is a kind of thin, transparent, open meterial. When people die,Show MoreRelatedEmily Dickinsons Because I Could Not Stop For Death883 Words   |  4 PagesBecause I Could Not Stop for Death - Analysis One of Emily Dickinson’s most famous poem Because I Could Not Stop for Death, consists of Emily summarizing her journey through life, from the afterlife. The poem embraces death and its eternity. She begins by personifying death as a person who takes her on ‘date’ in which her life is calmly retold. To begin, Emily receives a visit from Death. Death is not scary or forceful, instead she perceives him as a gentleman caller, who puts her at ease throughRead MoreEmily Dickinsons Because I Could Not Stop For Death1249 Words   |  5 Pages Emily Dickinsons most famous work, Because I Could Not Stop for Death is generally considered to be one of the great masterpieces of American poetry (GALE). Dickinson experienced an emotional crisis of an undetermined nature in the early 1860s. Her traumatized state of mind is believed to have inspired her writing. In this particular poem, â€Å"Because I could not stop for Death,† the deceased narrator of the poem reminisces about that material day when Death came seeking for her. In stanza oneRead MoreEssay on Emily Dickinsons Because I Could Not Stop for Death730 Words   |  3 PagesEmily Dickinsons Because I Could Not Stop for Death Emily Dickinson’s â€Å"Because I could not stop for Death† is a remarkable masterpiece that exercises thought between the known and the unknown. 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Dickinson uses controllingRead MoreEmily Dickinsons Because I Could Not Stop for Death Essay926 Words   |  4 Pages Emily Elizabeth Dickinson was a very talented poet. Her poems contained deep emotions and continue to amaze her readers. She was born in Amherst Massachusetts on December 10, 1830 to Attorney Edward Dickinson and Emily Norcross Dickinson. Her mother was very emotionally accessible. Dickinson was an energetic and outgoing child. She attended Amherst Academy and Mount Holyoke Female Seminary. Her father took her out of school after a year at Mount Holyoke because he thought she had enough educationRead More Analysis of Emily Dickinsons Because I Could Not Stop for Death803 Words   |  4 Pa gesAnalysis of Emily Dickinsons Because I Could Not Stop for Death In regard to Emily Dickinson’s poem, â€Å"Because I Could Not Stop for Death,† Critic Eunice Glenn says: â€Å"In the first two lines Death, personified as a carriage driver, stops for one who could not stop for him. The word ‘kindly’ is particularly meaningful, for it instantly characterizes Death. This comes with surprise, too, since death is more often considered grim and terrible† (Glenn). Critic Charles R. Anderson says, â€Å"Death, usuallyRead More Analysis of Emily Dickinsons Poem, Because I could not stop for Death693 Words   |  3 PagesAnalysis of Emily Dickinsons Poem, Because I could not stop for Death The poem Because I Could Not Stop for Death by Emily Dickinson expresses the speakers reflection on death. The poem focuses on the concept of life after death. This poems setting mirrors the circumstances by which death approaches, and death appears kind and compassionate. It is through the promise of immortality that fear is removed, and death not only becomes acceptable, but welcomed as well. 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Principles Of Communicative Language Teaching - 2063 Words

Principles of Communicative Language Teaching The ever-growing need for good communication skills in English has created a huge demand for English teaching all over the world. Nowadays, many people want to improve their command of English or to ensure that their children achieve a good command of English. The worldwide ultimatum for English has created a gigantic demand for quality language teaching, language teaching materials and resources, and appropriate teaching methodologies. Accordingly, the field of second or world language teaching has undergone many trends and shifts, over the last few decades. To achieve such demands, several methods have come and gone. We have seen the Audio-lingual Method, cognitive based approaches, the Total Physical Response (TPR), the Natural Approach, and many others. The belief that there is one single best method that meets the goals and the needs of all learners and programs has turned out to be bogus. What has emerged is a variety of communicative language teaching (CLT) methodologies which are seen as the most effective approaches to ELT. Communicative Language Teaching emerged in the 1970’s as a reaction to the traditional language teaching approaches. Since older methods, such as Audiolingualism and Situational Language Teaching, fell out of fashion CLT arose and soon spread worldwide. (Richards, 2006) There was a huge controversy among applied linguists concerning the centrality of grammar in language teaching and learning. It wasShow MoreRelatedCommunicative Approach1566 Words   |  7 PagesLANGUAJE TEACHING : THE COMMUNICATIVE APPROCHE I. Problems in the present English teaching and causes of these problems II. Introduce the communicative approach 1. The definition of communicative approach 2. Two principles of communicative approach †¢ Create a realistic situation †¢ The class should be students-centered III. 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As the U. K. entered the common market (EEC) in the early 1970s. A sharp rise in demand from our new European neighbours for The English Language landed on our shores. Due to the modernization of secondary schools not only in Europe but indeed worldwide, languages were a hot commodity and many were on offer, English being most sort afterRead MoreThe Audio Lingual Method For Teaching English Language Learners1508 Words   |  7 Pagesvariety of researched methods for teaching English Language Learners (ELLs) exist and most of them tend to claim communicative language use as their main goal, but this goal is not clearly evident in every method that claims it due in part to differences that arise from linguistic focuses versus psychological viewpoints. 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The national English curriculum made a major paradigm shift in mandating English as a compulsory subject in schools and universities. The English teaching method was influenced by western educational ideology of ‘values system’ or ‘classicalRead MoreConstructivism and Connectivism as Theories of Learning Essay1554 Words   |  7 Pagescourse or a skill. Computers are used in language learning and teaching ,so many new terms are coined to explain this process. CALL was first introduced on university mainframe computers. It is an acronym of computer assisted language learning It may be defined as the search for and study of applications of the computer in language teaching and learning Levy M. (1997). CALL is introduced in programs to assist language learning. There are many types of CALL programs. 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Law as a Living Body Free Essays

Laws in America are constantly changing. With the changes that America has the laws do not get updated with the change of time. These laws are no longer enforced because they do not seem as bad with the changes in society. We will write a custom essay sample on Law as a Living Body or any similar topic only for you Order Now There are three phases that America operates its legal system. Law as a living body, Due process and protecting the rights of the accused. Laws are considered a living body because the laws have been changed and interpreted differently in different cases that laws have become like a living body. The living human body evolves and grows with time. The body adapts to the changes in society as does the law. Law on the books refers to the written laws. Law in action refers to the laws that are actively being used and punishable for. For example, in some states Adultery is against the law but is rarely enforced. This means the law of adultery is a law on the books not a law in action. A law in Action is a law such as sex abuse that is often enforced in every state. Objectivity of law is how and where the laws are made and interpreted. Legislatures create basic laws where judges and juries can interpret them. The living body theory refers to the way laws are constantly changing and evolving like a human body. The human body evolves and changes with the times. Due process is best defined in one word, fairness. Throughout the U. S. ‘s history, its constitutions, statutes and case law have provided standards for fair treatment of citizens by federal, state and local governments. These standards are known as due process. When a person is treated unfairly by the government, including the courts, he is said to have been deprived of or denied due process. In 1791, our Fifth Amendment rights protected all individuals, American born and immigrants, basic protection from the federal government regarding civil rights violations. The positives of due process are that a person must be proven guilty not proven innocent in the court of law. If the Officers that are investigated and prosecuting a person of a crime do not fallow the laws of due process from the very beginning to the end the case may be dismissed from court. The negatives of due process are that even a guilty person may be let free if due process laws are not fallowed correctly. Another negative is that due process focuses on the rights as individuals rather than on society as a whole. Prior to the attacks on 09/11/2001, Individuals were protected by the 4th amendment. The fourth amendment protects citizens from unreasonable searches and seizures. Law enforcement needed to have probable cause to gain a search warrant. President Bush passed the patriot act, allowing law enforcement the right to search or seize telephones, computers, medical information or financial records on any person who is suspected of terrorism. With the Patriot act probable cause is no longer needed if a person is suspected of terrorism. The Due process of Law was created to protect the rights of those accused of committing a crime. Some of these laws date to 100 years ago and some are new laws that were developed as a result of historical court cases. Cases such as, the fourth amendment, this protects all individuals from illegal search and seizures (Mapp v. Ohio, 1961) Our fifth amendment protects individuals from self-incrimination, (Miranda v.  Arizona, 1966) And the sixth amendment protects us from being interrogated without a counsel present (Escobedo v. Illinois, 1964) Law as a living body is constantly changing and will continue to grow with the change in times. We are still protected as citizens with the changes in society. Our rights as well as the rights of others will continue to be a priority in law enforcement. Law enforcement is meant to protect society from crime, not to cause it by not valuing the rights of citizens. As society changes, the laws will too. How to cite Law as a Living Body, Essay examples

Symbolism Of The Great Gatsby Essay Research free essay sample

Symbolism Of The Great Gatsby Essay, Research Paper Symbolism IN THE GREAT GATSBY Frazer McIntoshs There are many grounds why F. Scott Fitzgerald is renowned as one of the greatest writers of his clip, and one of those grounds is his sophisticated usage of symbolism. This is apparent throughout The Great Gatsby, one of Fitzgerald s most celebrated plants. While there are infinite cases of the usage of symbolism, some of those most of import to the subjects in The Great Gatsby are the East and West Eggs, the green visible radiation, and the eyes of T.J. Eckleburg. From the really first chapter, there is a noticeable difference between the two parts of the metropolis. In fact, Nick make the point that West Egg is, the well, the less stylish of the two ( 9 ) . The importance of this difference lies in the fact that one of the major subjects of the novel is category and societal standing. We will write a custom essay sample on Symbolism Of The Great Gatsby Essay Research or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Most of the characters face some kind of category boundaries, so the East and West Eggs act as a symbol for the barriers by demoing a physical separation of the two categories. The people populating in East Egg, Tom and Daisy, are the more refined of the two groups. They represent the old money and are particularly superficial and mercenary. Those who come from West Egg, on the other manus, are non a sophisticated in the eyes of the East Eggers, and can non hold a genuinely high societal standing, irrespective of how affluent they are, since they are new money. The societal barrier is can be found in that Gatsby can non hold Daisy because she is a true rich miss, and the fact that neither Tom nor Daisy are willing to accept what the see at Gatsby s 2nd party, even though Tom is being hypocritical when you consider that his ain parties were no more refined in nature than Gatsby s. Gatsby is hop elessly separated from his dream, merely as East Egg is separated from West Egg. In add-on to the physical spread that Gatsby wishes to shut, the green visible radiation coming from Daisy s dock symbolizes the yearning Gatsby has for Daisy. Additionally, it besides represents Gatsby s great dream a whole. He longs for wealth and credence every bit good as Daisy. No how much he has, nevertheless, his yearning is still at that place every bit long as Daisy is non with him, since everything else he wants is in actuality merely portion of his dream to hold Daisy once more. It is deserving taking note that his yearning is represented by the colour viridity, which is associated with money and enviousness. So, the green visible radiation that ever burns at the terminal of dock, represents everything Gatsby longs for. At the terminal of the book, Nick remarks on the green visible radiation: # 8220 ; Gatsby believed in the green visible radiation, the orgastic hereafter that twelvemonth by twelvemonth recedes before us. It eluded us so, but that # 8217 ; s no matter- to morrow we will run quicker, stretch out our weaponries farther # 8230 ; And one mulct morning- # 8221 ; ( 189 ) . A concluding major symbol of The Great Gatsby is the hoarding near Wilson s garage, with the eyes of Dr. Eckleburg. Because most of the characters do non look to hold any values or guilt for their misbehaviors, Fitzgerald implements the eyes of Eckleburg as a agency of judging those who do non fear judgement for their careless actions. They are near Wilson s house because of the events that happen at that place, particularly the struggle between Tom, Myrtle and George, ( and Daisy to some extent ) where they are all rip offing on one another, and of class, Myrtle s decease due to the careless behaviour of Daisy. Fitzgerald uses the judging eyes of Eckleburg to stress the deficiency of guilt in this civilization, and to do a point that possibly these offenses do necessitate to be punished.

Ocean Carriers free essay sample

Introduction †¢ Ocean Carriers Inc. owned and operated cape-size dry bulk carriers worldwide. †¢ Major Cargo type : Iron ore. †¢ Vessel sizes : 80000 DWT to 210000 DWT. †¢ Cape-size carriers travel around Cape Horn rather than the Panama Canal due to size constraints. Operations Maintenance Maintaining Supplies And on board Stores Supply of Lubricants Cargo Operations Repairs Insurance Business Model †¢ Mostly chartered on â€Å"time charter † basis for one, three , or five year periods. †¢ Occasionally spot charter market was used too. †¢ Charterer paid a daily hire rate for entire duration. †¢ They controlled where the cargo was  loaded and unloaded and also determined the cargo. †¢ OC Inc. supplied a qualified crew along Brief History †¢ In 2003, the average daily operating costs amounted to $ 4000. †¢ This cost increased annually at 1% due to inflation. †¢ Charterers were not charged for days spent in maintenanc e and repair but operating cost were still incurred. Maintenance Work Time Details †¢ Initially 8 days a year for repairs and maintenance. We will write a custom essay sample on Ocean Carriers or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page †¢ This time increased to 12 days per year for ships operating for more than 5 years. †¢ For ships operating for more than 10 years the repair and maintenance days increased to 16 day per year. Operating Policies †¢ Ocean Carriers didn’t operate ships which were more than 15 years old. †¢ As per international maritime regulations they underwent special surveys every 5 years for seaworthiness of the carriers. †¢ As per the norms maintenance costs of ships older than 15 years was too high. †¢ To avoid these costs they sold the ships in scrap or second hand market before SWOT Analysis Strengths Weaknesses †¢ New and Larger vessels compared to industry †¢ So premium is earned compared to market †¢ Too much dependence on basic industries †¢ Not much product differentiation Opportunities Threats †¢ Great demand for iron ore and coal products in a strong economy †¢ Australian production and Indian Exports creating long term demand †¢ Probability of defaulting of Charterer †¢ Future estimates not entirely reliable Case Brief †¢ Background: – Mary Linn, VP Finance at OC Inc is evaluating options whether to invest and if yes how to invest in the new ship to be leased in 2003 †¢ Aim: – To evaluate the various options of capital budgeting, leasing, owning and resale of the new project ANALYSIS Assumptions †¢ Ocean Carriers is a U. S. firm †¢ Discount rate is taken to be 9% †¢ In case of 15 year life of the ship, theresale value in 2017 is calculated by assuming that the ‘then discount rate’ would be 12% †¢ Corporate tax rate is assumed to be 35% (Source: US Federal Reserve Data Release, 2001) Assumptions Continued †¢ Ocean Carriers is located in Hong Kong, where owners of Hong Kong ships are not requ ired to pay any tax on profits made overseas and are also exempted from paying any tax on profit made on cargo uplifted from Hong Kong. †¢ Discount rate is 9% †¢ Inflation rate is 0. 4% (Source: Central Bank of China data release, 2001) Options Available Don’t invest in new ship Build Operate for 15 yrs Sell off or scrapthereafter What to choose? Build Operate for 15 yrs Sell off or scrap thereafter Option. Years Life †¢ The DCF analysis of this option gives us the following results: Option 2 : 25 years life †¢ The DCF analysis of this option gives us the following results: Business Implications of the analysis: Assume the company is based Recommendations †¢ NPVs of both the options are negative †¢ Also, the IRR of both the options are less than the existing discount rate †¢ As a result, we recommend that Ocean Carriers Inc. should not go for the investment in the ship †¢ The tax rate of 35% is considerablylarge †¢ The initial $39 million purchase of the new ship is never fully recovered by expected future revenues since NPV is negative in both the cases †¢ Thus, the investment is too much of a Business Implications of the analysis: Assume the company is based in HK Recommendations †¢ Considering the zero tax assumption, we can see that the NPV of both the options is positive and that for 15 year life is more than the 25 year life †¢ Thu s, assuming the company is based in Hong Kong, the company must go for the 15 year life option owing to the higher NPV Reasons for selecting the 15 years life option †¢ As stated earlier, the NPV of this option is more than the other †¢ As the ship gets older than 15 years, the hire rate starts decreasing more rapidly as seen from Exhibit 4 †¢ As it can be seen from the following graph, the hire rate reduces more rapidly after 2017 Expected Daily Hire Rate vs Age Sell of the ship and don’t scrap †¢ As seen in Exhibit 6, the ship has the potential to generate cash flows even after 15 years †¢ The estimated resale value of the ship at the end of 15 years assuming that the life can be extended up to 25 years is $2,41,78,423 †¢ This value is significantly higher than the  scrap value of $5,000,000 †¢ Also, the company has a policy of not operating the ships older than 15 years old †¢ But, there exists a potential for selling off the ship since some other companies do Continued†¦. †¢ The current inflation was pegged at 0. 4%. But, in case in the future years, say 15 years hence, if the inflati on rises above 0. 4%, then there would be a significant increase in the operating costs and working capital requirements †¢ Thus, the current forecasts for 20 -25 years down the line may not hold good †¢ Thus, even with this case it is better Ocean Carriers Inc. should accept the 3 year contract †¢ Amount recovered by the initial contract is $17,192,594 †¢ Many a times, new ships may not be leased out immediately after delivery because of low demand †¢ But, in this case, the ship can be immediately leased out: meaning it can generate cash inflows immediately on commission †¢ Also, since the client is in utter need of the ship, he may offer the company a premium of 10-15% which is beneficial for Ocean Carriers Inc. Our Recommendations Invest in new ship OC Inc is HK Based OC Inc is US Based Operate it for 15 yrs followed by resale Accept the initial 3 yr contract for Don’t invest in new ship