group mini case.docx - Rio Negro Inc is considering the...

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Rio Negro, Inc. is considering the most advantageous course of action with the current conditions while dealing with the Maracas overhaul. Over the last 25 years the vessel has been in operation. Additionally, there are numerous option alternatives accessible to the analysis. The first choice is the most straightforward overhaul by rebuilding the engine while the second alternative has a complete overhaul with new engine and command system upgrade. The third choice may be the most lucrative option, by exchanging for an entire new vessel. The report evaluates all courses of action and provides the most suitable, feasible option. Allow us to provide the analysis with the proposed overhaul choice’s present value. The analysis provided explains where the option currently stands and where it must go for cost effectiveness. The capital outflow provides both options and the necessary calculations operational cash flow (OCF) for all designated periods. The OCF statistics are determined based on EBT, tax, and depreciation. The figures behind the analysis can be found in all appropriate exhibits attached.

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