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#11
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wrecked ship
On 7/25/12 5:22 AM, Jaap wrote:
the ship will be scrapped, after raising it (for over 100 million Euro) the cost to refurbish would add to a price higher than building a new ship. Ignore the cost to raise it. That has to be paid. That's a sunk cost. You don't build that in the financial model. If they actually need a ship, then you compare the money they would receive with scrapping this ship along with the cost to construct a new ship vs. the cost to refurbish this hull. And if there is a major timeline difference, you can build in sales figures for the 2 scenarios (like if one option finishes a year sooner, you can build in a year of cruise sales the other scenario doesn't have). That should be your true cost differential. As far as superstition, they would likely divert it to a different division and give it a new name. They've had ships catch fire and reused the ship. |
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