This case study scenario is designed to help all students or chemical engineers build business problem-solving skills through engineering scenarios. While created to mimic real-life situations, this scenario is hypothetical and for educational purposes only. Scenario The client, Huey Duck, has inherited an oil tanker from his great uncle, Scrooge McDuck, the richest duck in the world and a serious businessman with a very diverse portfolio. He would like to sell the oil tanker, but knowing nothing about the oil transportation business, he needs to better understand what it is worth. How would YOU help him value the oil tanker?
Additional Information: There are 3 sizes of oil tankers in the market: Large, Medium, and Small. Ships are otherwise identical. The number of ships in the 3 categories as well as their capacity and cost are listed in the table below: [table id=31 /] Your client Huey Duck's ship is medium-sized. Demand in the oil tanker industry is at 3,000,000 Barrel (bbl) per year in Duckberg. Assume that ships last forever and there is no depreciation or maintenance costs; in other words, used ship costs exactly the same as a new one. Each ship is independently owned and operated. Each ship is capable of exactly one trip per year. Can you provide the best answer first? Post your answer below - the author will respond!