  We present a Monte Carlo study of an underwater neutrino telescope based on
the detection of acoustic signals generated by neutrino induced cascades. This
provides a promising approach to instrument large detector volumes needed to
detect the small flux of cosmic neutrinos at ultra-high energies (E > 1 EeV).
Acoustic signals are calculated based on the thermo-acoustic model. The signal
is propagated to the sensors taking frequency dependent attenuation into
account, and detected using a threshold trigger, where acoustic background is
included as an effective detection threshold. A simple reconstruction algorithm
allows for the determination of the cascade direction and energy. Various
detector setups are compared regarding their effective volumes. Sensitivity
estimates for the diffuse neutrino flux are presented.
